Herbert Smith Freehills and its longstanding Indonesian affiliate firm Hiswara Bunjamin & Tandjung, are pleased to be advising Commonwealth Bank of Australia (CBA) on the sale of its 99% shareholding in its Indonesian banking subsidiary, PT Bank Commonwealth (PTBC), to PT Bank OCBC NISP Tbk (OCBC Indonesia), a subsidiary of Oversea-Chinese Banking Corporation Limited (OCBC).
The upfront cash consideration for the sale is approximately A$220 million.
PTBC focuses on retail and SME segments in Indonesia, providing a range of banking and wealth management products. PTBC has more than 1.2 million customers, with total assets of approximately A$1.8 billion and net assets of approximately A$390 million as at 30 June 2023.
The transaction is subject to a number of conditions including regulatory approvals in Indonesia and Singapore, and is expected to be completed in the second or third quarter of 2024.
The team advising CBA is led by partners Vik Tang and Amelia Morgan, together with Hiswara Bunjamin & Tandjung partner Abimata Putra and associate Josua Hutauruk in Jakarta, and by Herbert Smith Freehills senior associate Liam Higgins and solicitor Ben Kyriazis in Sydney. The team is being supported on a range of specialist areas by other lawyers, including the firm’s team in Singapore.
The team is working closely with the CBA legal team, including Kirsty Cox, CBA’s General Manager, Corporate and Treasury Legal, and Senior Legal Counsel Michael Ting and Simon Craddock.
Sydney partner Amelia Morgan said, “It is a privilege to be working with CBA on this significant cross-border transaction. The divestment of PTBC is an important part of the Bank’s strategy, of which we are delighted to be a part.”
Vik Tang noted that, “We are proud to have been able to add our expertise across Southeast Asia, particularly in Indonesia and Singapore, to this important deal for the Bank. We are looking forward to working with the CBA team towards completion of the transaction next year.”
In Jakarta, Herbert Smith Freehills partners and lawyers practise on secondment to Hiswara Bunjamin & Tandjung, consistently recognised as one of the leading full-service law firms in Indonesia. Herbert Smith Freehills’ 23-year association with Hiswara Bunjamin & Tandjung is one of the longest – and most successful – law firm associations in the Indonesian market.
