Woori Bank, a South Korea-based lender, has reported that the financial regulators have approved its proposed acquisition of 33% stake in Bank Saudara in Indonesia.
PT Bank Woori Indonesia, a unit of Woori Bank, reportedly signed an agreement to purchase the stake, which equates to 764.4 million shares in PT Bank Himpunan Saudara in June 2012, as reported by Reuters.
In January 2012, Bank Saudara told the news agency that it planned to boost its operations in Southeast Asia’s biggest economy by bringing in a strategic investor through a rights issue.
Founded in 1906, and managing approximately 110 sales offices in the country, Bank Saudara is expected to have nearly $727m in total assets with $51m paid-in capital. It offers savings and checking accounts, fixed deposits, credit loans, and other banking services.
Woori Bank aims to emerge as the second-largest stakeholder in the bank, following latest share purchase.
A statement by the Korean President Park Geun-hye in October last year was quoted by hankyung.com as saying, "I hope the ongoing effort by Woori Bank to move into the Indonesian financial services market could be successful as the government approval for the deal is made expeditiously."
Image: Woori Bank plans to acquire 33% stake in Bank Saudara Investment. Photo courtesy of adamr/FreeDigitalPhotos.net.