5 August 2010

Acquisition of PT Bank Ina Perdana by Affin Bank Berhad

KUALA LUMPUR, 4 August 2010 - In a move to extend its reach, Affin Bank Berhad (AFFINBANK) announced its acquisition of Indonesian bank, PT Bank Ina Perdana today.

This acquisition being the first for AFFINBANK to venture out of the Malaysian borders will be funded internally, at an estimated price tag of RM138 million.

'We are encouraged with the growth potential in Indonesia especially with PT Bank Ina Perdana's niche positioning as a retail bank in the SME sector. This acquisition fits in nicely with AFFINBANK's long term plan to further grow its business and increase its shareholders value,' Dato' Zulkiflee Abbas Abdul Hamid, AFFINBANK Managing Director / CEO said.

Dato' Zulkiflee also mentioned that even though PT Bank Ina Perdana's operations are comparatively small in terms of its branches and spread, it has strong financials and good standing as well as rated highly amongst the Indonesian financial industry. It has 22 branches which are strategically located in major cities in Indonesia.

He added that the synchronisation between AFFINBANK and PT Bank Ina Perdana will benefit both organisations’ clientele and further propel its business to the next level.

With the acquisition and subsequent subscription of shares, AFFINBANK will have a direct majority shareholding of 80% in PT Bank Ina Perdana. The estimated acquisition price will translate into an average price-to-book ratio of 1.69 times (based on the unaudited net assets of PT Bank Ina Perdana as at 31 May 2010).

We see this acquisition as a step forward for AFFINBANK and AFFINISLAMIC. The potential for Islamic banking in Indonesia is vast and AFFINISLAMIC has the capabilities and expertise to ensure the growth and development of Syariah banking as we move regionally.

'Indeed, as we seek the approval of our respective regulators which are Bank Negara Malaysia and the Bank of Indonesia for this effort, we have taken into account of the complexity of each market and we are certain that such a move will be beneficial to all parties.' Dato' Zulkiflee explained.

< back>