Hana Acquires Bank in Indonesia
By Na Jeong-ju
Staff Reporter
Hana Bank said Monday it has acquired a majority stake in PT Bank Bintang Manunggal, a tiny Indonesian bank with some $3.8 million in capital and $30 million in assets.
Hana signed a contract to buy a 60 percent stake in the Indonesian lender for 3 billion won ($3.3 million), and the deal is awaiting approval from the country's central bank, Hana said.
Korea's fourth-largest lender plans to grow PT Bank Bintang Manunggal into one of the top 20 banks in Indonesia through mergers with other small-sized lenders and by expanding business line-ups. PT Bank Bintang Manunggal is now one of the smallest banks in Indonesia with just a few branches, Hana officials said.
``As we still have no branches or subsidiaries in Indonesia, our acquisition of PT Bank Bingtang Manunggal is very significant for our business in Southeast Asian countries,'' a Hana official said. ``We plan to set up more operations in Singapore and Indonesia to find more business opportunities in Southeast Asia.''
Currently, Kookmin Bank, the country's largest lender, is the second largest shareholder in Bank International Indonesia, the sixth largest commercial lender in Indonesia by assets. Woori Bank and Korea Exchange Bank also have a subsidiary in the country.
Hana said the acquisition is part of its overseas expansion strategy. The bank plans to set up a subsidiary in Beijing within this year with the goal of offering retail services to Chinese people. It will also open an office in Ho Chi Minh City, Vietnam, this year
``By 2015, we will be able to complete our overseas business network that will link China, Vietnam, Indonesia and India,'' Hana said in a press release.