DOHA: The Qatar National Bank (QNB) Group has completed the acquisition of majority share of Indonesia-based Bank Kesawan following a rights issue.
QNB Group and Bank Kesawan signed a “Letter of Intent” in September 2010, making QNB Group the “Standby Buyer” for the rights issue which received regulatory approval in December 2010.
Ali Shareef Al Emadi, QNB Group Chief Executive Officer, said this partnership is in line with the Bank’s international growth strategy to expand its presence in strategic markets with significant potential. “QNB Group is a committed long term investor in Bank Kesawan and wishes through its investment to be a partner in the development of Indonesia’s economy,” he said.
Erwin Aksa, President Director of Bosowa Corporation which is the partner shareholder of Bank Kesawan, said the alliance with QNB Group will have a positive impact on Bank Kesawan’s overall business plans with the increase in share capital, enhancing the Bank’s financial position and allowing for the expansion of business activities. The partnership will also benefit Bank Kesawan through synergies with QNB Group’s advanced information technology system in addition to its expertise as of one the leading financial institutions in the Middle East and North Africa region.
Indonesia is the largest economy in Southeast Asia and is also a member of the G-20 group of major global economies. An energy exporting nation, Indonesia has spent considerable resources on developing its infrastructure and is today a truly vibrant market economy, with robust sub sectors including the financial sector which has grown considerably in recent years under the guidance of the Indonesian Central Bank to strengthen the banking sector by encouraging consolidation and significantly improving prudential banking and supervision.
Bank Kesawan currently operates a network of 36 branches and sub branches throughout Indonesia, with total assets of approximately 3.2 trillion Indonesian Rp. ($356m) and shareholders’ equity of approximately Indonesian Rp920bn. ($102m), with a capital adequacy ratio of 60 percent after the completion of the recent rights issue.
The acquisition of a majority shareholding in Bank Kesawan supports QNB Group’s international expansion plans, which in recent years have become an integral part of the bank’s growth strategy and have supported the Bank’s commitment to diversify the sources of its revenue by exploring new and promising opportunities.
Qatar and Indonesia have been enjoying stronger economic ties in recent years. Qtel, for example, owns a majority stake in Indosat, the second largest mobile operator in Indonesia, while Qatar Holding in May 2010 announced its intention to launch a wholly owned $1bn investment fund focused on Indonesia.