Excerpts from CGSCIMB report

OCBC (SGX: O39)

OCBC Indonesia will be acquiring 99% of PT Bank Commonwealth (PTBC) for a cash consideration of c.S$191m, valuing PTBC at c.0.5x FY23F P/BV. While we think that the transaction is priced attractively, we highlight potential asset quality clean-ups and cost rationalisation measures before integration. Reiterate Add. We expect neutral share price reaction from this news.

OCBC acquiring PTBC for an upfront cash consideration of c.S$191m

PT Bank OCBC NISP (OCBC Indonesia) announced today (16 Nov 2023) that it will be acquiring 99% of the shares in PT Bank Commonwealth (PTBC) from Commonwealth Bank of Australia (CBA) for an upfront cash consideration of c.A$220m (c.S$191m). OCBC Indonesia is currently trading at c.0.7x FY23F P/BV. The acquisition will be funded through internal cash and is subject to regulatory
approvals from the Financial Services of Indonesia (Otoritas Jasa Keuangan) and Annual General Meeting of...