Standard Chartered PLC Update on disposal of interest in PT Bank Permata (2264K)
April 20 2020 - 8:39AM
UK Regulatory
TIDMSTAN
RNS Number : 2264K
Standard Chartered PLC
20 April 2020
Standard Chartered PLC
Update on disposal of interest in PT Bank Permata Tbk
20 April 2020
Standard Chartered PLC (the Group) announces that its wholly
owned subsidiary Standard Chartered Bank (SCB) and its partner PT
Astra International Tbk (Astra) have agreed with Bangkok Bank
Public Company Limited (the Purchaser) to amend the terms of the
agreement announced on 12 December 2019 (the Transaction) to sell
their aggregate 89.12% equity interest in PT Bank Permata Tbk
(Permata).
The Purchaser has received approval for the Transaction from its
shareholders. Permata's shareholders are expected to approve the
acquisition plan at an extraordinary general meeting scheduled for
23 April 2020, at which both SCB and Astra are entitled to vote
their respective 44.56% shareholdings. T he Transaction remains
subject to certain conditions, including necessary approvals from
the regulatory authorities in Indonesia.
The parties to the Transaction have agreed to revise the
purchase price from 1.77 to 1.63 times Permata's shareholders'
equity as at 31 March 2020, subject to the Transaction closing on
or prior to 30 June 2020.
FINANCIAL IMPLICATIONS TO STANDARD CHARTERED OF THE
TRANSACTION
The latest estimated consideration payable to SCB in cash is
approximately IDR17 trillion (US$1.06 billion) being approximately
US$0.3 billion greater than the Group's carrying value. The 18%
reduction in estimated proceeds compared to that indicated on 12
December 2019 is attributable to the revised valuation multiple, a
reduction in Permata's shareholders' equity due to the adoption of
IFRS 9 and the recent depreciation of Indonesian Rupiah against the
US Dollar.
The Transaction would generate, on the basis of the Group's
financial results for the period ended 31 December 2019, an
increase in the Group's Common Equity Tier 1 capital ratio of
around 40 basis points, reflecting a reduction in risk-weighted
assets of around US$9.1 billion and the deconsolidation of US$0.5
billion minority interest equity (net of regulatory adjustments
including goodwill).
The impact of the Transaction will be included in normalised
items to determine the Group's performance. As the Transaction is
expected to close at a future date, the actual consideration and
the actual Common Equity Tier 1 capital impact will be determined
at completion.
Note:
In this announcement, the conversions of IDR into US$ have been
made at the rate of IDR15,800 to US$1. Such conversions are for
reference only and should not be construed as representations that
the IDR amount could be converted into United States dollars at
that rate.
Enquiries to :
Mark Stride, Head of Investor Relations +44 (0) 20 7885 8596
Julie Gibson, Head of Media Relations +44 (0) 20 7885 2434
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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