On Monday, one of Thailand’s top banks purchased a majority share in Indonesia’s Bank Maspion for $220 million (May 30). Kasikornbank, the kingdom’s second-largest lender by assets, would receive 67.5 percent of Maspion’s shares as part of the agreement, which is anticipated to be completed by the end of the year, according to a statement by the Thai lender to the Stock Exchange of Thailand.
It comes as Thailand seeks foreign investment as the country’s economy stagnates due to low-interest rates and high household debt.
Indonesia, the region’s largest economy, is a particular target, with Bangkok Bank, the region’s largest commercial bank, buying a US$2.28 billion holding in Bank Permata two years ago.
Following a decision to invest US$20 million for a 10% stake in Bank Maspion in 2017, the current agreement will allow Kasikornbank to develop a more permanent presence in Indonesia.
Kasikornbank built its first branch in Vietnam this year and is expanding into Myanmar, Laos, and Cambodia, after purchasing a 35 percent share in Ayeyarwaddy Farmers Development Bank in 2020.
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