BCA Immediately Complete The Rabobank Acquisition Process

BCA Building. (Angga Nugraha / VOI)

JAKARTA - The largest private bank in Indonesia, PT Bank Central Asia Tbk (BCA), is in the process of acquiring or taking over PT Bank Rabobank International Indonesia. However, it turned out that BCA had to spend more to acquire the bank.

Quoted from an information disclosure on the Indonesia Stock Exchange, Tuesday, June 9, BCA estimates that the provisional value of the acquisition will reach IDR 500 billion. However, the final amount will be agreed upon referring to Rabobank's equity adjusted at the time of the acquisition, plus a fixed premium of US $ 20.5 million.

Referring to the middle exchange rate of Bank Indonesia Monday, June 8, Rp. 14,150 per US dollar, it means the premium price that must be paid by BCA is Rp. 287.30 billion. In total, this issuer coded as BBCA shares must disburse IDR787.30 billion to acquire Rabobank.

Previously in December, BCA had stated that the acquisition value of Rabobank was worth IDR397 billion. BCA will acquire 99.99 percent of Rabobank's shares, while the rest will be taken by the company's subsidiary, PT BCA Finance.

On 31 July 2020, BCA will also hold an EGMS to ask for the blessing of shareholders regarding this acquisition, before it is processed by the Financial Services Authority (OJK).

Meanwhile, if all approvals are pocketed, BCA intends to merge the business of its subsidiary with Rabobank. However, it is still unclear which BCA subsidiary is safe to merge with Rabobank.

For your information, in the explanation BCA stated that the company currently has subsidiaries engaged in car financing, motorcycle financing, general insurance, life insurance, banking, sharia banking, securities, remittances and venture capital investment.

Upon completion of the Proposed Acquisition, Rabobank will provide added value to BCA and its subsidiaries through, among other things, the plan to merge with one of BCA's subsidiaries. The potential for merger between Rabobank and BCA's subsidiaries will be studied as a strategic initiative to strengthen the subsidiary of BCA that will accept the merger.