Print this article

RHB Capital Takes Over Indonesian Bank

Vanessa Doctor

20 October 2009

Malaysian bank RHB Capital has agreed to take over 80 per cent of Indonesia's Bank Mestika for $329 million.

RHB Capital is the holding firm of the RHB Banking Group, the fourth largest financial services company in Malaysia.

In a statement, RHB said that the purchase was fuelled by the growing importance of Indonesia in its regional expansion strategy, as well as its geographical proximity. RHB has been preparing to launch a series of M&As over the next years as part of its aim to become a top ASEAN financial services firm by 2020. Bank Mestika, headquartered in Medan, Indonesia, currently has 50 branches spread across the country.

The acquisition is expected to be finalised by the second quarter of 2010.