KB Kookmin to own 67% of Indonesia's Bank Bukopin
By the end of August, KB Kookmin Bank will own 67 percent of the Indonesian bank’s shares.
“Under active support of the local government, [KB Kookmin Bank] will be able to obtain more than two-thirds of [Bank Bukopin’s] shares without having to pay premium,” the Korean company said in a July 20 release.
“In terms of acquisition price, it will also be the lowest level for purchase of an Indonesian bank in the recent five years.”
Bank Bukopin has 412 branches and offices in Indonesia, specializing in pension credit and loans for small and mid-size enterprises. The bank has been struggling with liquidity issues recently, especially in the face of the Covid-19 pandemic.
In 2018, KB Kookmin Bank had acquired 22 percent of the Indonesian bank, becoming its second largest shareholder.
The Korean bank said it will fortify Bank Bukopin’s risk-management capacity and digital finance.
KB Financial Group, a holding company of KB Kookmin Bank, reported 738.9 billion won ($614 million) net profit in the first quarter, securing the No. 2 spot in the industry.
BY JIN EUN-SOO [firstname.lastname@example.org]