OCBC Joins The Race - RHB
Maintain TRADING BUY with higher IDR1,300 TP (1.4x FY20F P/BV) from IDR1,185, 35% upside. OCBC emerged as a new bidder for a stake in Permata. With more banks competing for a slice (along with Mizuho/ Sumitomo), we believe the transaction price will be at a premium. According to Bloomberg, OCBC is reportedly considering buying both Astra’s and Standard Chartered’s stakes, which total 90%. OCBC NISP’s and Permata’s combined assets will make it the fifth largest bank in Indonesia.
OCBC joins the bid vs Mizuho/Sumitomo. Bloomberg reported that Oversea-Chinese Banking Corp (OCBC SP, NEUTRAL, TP: SDG11.80) is considering to acquire the majority stake (90%) in Bank Permata from both Standard Chartered and Astra (ASII IJ, NEUTRAL, TP: IDR6,950) (as opposed to Mizuho aiming to buy only StanChart’s stake). The article also said that OCBC is getting ready for another acquisition due to its lessgenerous dividend policy of 41%, vs other Singaporean banks like DBS’ (DBS SP, NEUTRAL, TP: SGD28.50) and United Overseas Bank’s (UOB SP, BUY, TP: SGD29.50) 55%/51% respectively.
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