Woori Bank to acquire Bank Saudara

Woori Bank Korea (WBK) and PT Bank Woori Indonesia (BWI) announced their plan to take over 33% shares of PT Bank Himpunan Saudara 1960 Tbk (SDRA IJ).

WBK and BWI will take over 27% (625mn shares) and 6% (138mn) from Arifin Panigoro and PT Medco Intidinamika, respectively, that will reduce their ownership in the acquired bank to 27.27% and 3.68%. Bank Saudara focuses on the retirees and SME which will be strengthened further.

Comment:
The acquisition price and timing has yet to be decided but as of December 2012 book value per share of Bank Saudara is Rp232 versus Rp204 in December 2011. With the 33% acquisition of SDRA IJ we believe there will not be any tender offer but this does not stop them to acquire more in the future if they are allowed by the authority. (Kontan)