Commonwealth Bank of Australia (CBA) is weighing options for its Indonesian banking operation, PT Bank Commonwealth, Bloomberg reported, citing sources.
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The move would see CBA, which is among the top banks in Australia based on market value, exit a non-core market and raise cash.
Sources told the publication that CBA has roped in financial advisors to determine investor interest in PT Bank Commonwealth.
The disposal of Indonesian businesses could fetch several hundred million dollars and attract bids from banks looking to expand in the country, they added.
With IDR20 trillion ($1.29bn) in assets as of April 2021, CBA’s Indonesian unit caters to both retail customers and small and medium-sized businesses, according to its website.
The bank also offers services to affluent clients.
CBA first opened a representative in Indonesia in 1992 and established a joint venture to provide corporate banking services to business entities five years later.
In 2007, the Australian bank acquired Bank Artha Niaga Kencana (ANK) as part of its expansion in the SME market.
Talks are at an initial stage and CBA could still decide against selling the business, the sources said.
In March this year, CBA signed a $1.31bn deal to dilute its shareholding in China’s Bank of Hangzhou (HZB).
The sale of a stake in HZB was part of CBA’s strategy to focus on core operations in Australia and New Zealand.
In 2018, CBA agreed to sell its life insurance arm to FWD Group Holdings, which is owned by billionaire Richard Li.
Is your business ready for the cross-border payments boom? The chances are that your brand is broadening its horizons, lured by the appeal of high-growth markets in South America, Asia and Africa. This means courting both opportunity and risk. Successful firms will adapt quickly to currency fluctuations, regulatory divergence and unfamiliar payment media. Struggling ones will see costs climb as they stumble over technical hurdles and conversion rates slow to a trickle.
Businesses needn’t swim against the tide of cross-border payment flows. Creating a speedy, compliant, cost-effective solution is possible – and an experienced partner can help. Worldline have created a comprehensive guide covering the latest developments in the global payment landscape and how brands can create a seamless cross-border payment solution. Fill in your details to find out more.
By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Worldline privacy policy
By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services.
Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
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