TPG buys Indonesian bank for $200m

TPG has reportedly acquired Indonesian Bank Tabungan Pensiunan Nasional as the US buyout firm increases its investments in the country.

TPG has reportedly bought 72 per cent of Bank Tabungan Pensiunan Nasional for around $200 million (€148 million).

The Wall Street Journal reported the deal would value the entire bank at a little less than three times its book value of $100 million.

Indonesian investment company Recapital Advisors said two weeks ago it was considering selling its 23 percent stake in Bank Tabungan. Indonesian welfare minister Aburizal Bakrie’s family business Bakrie Capital Indonesia is also selling its stake to the buyout firm.

But XFN Asia also reported the corporate secretary division head of Bank Tabungan as saying she has no knowledge of any change in the firm’s ownership.

The Bakrie family owned Bank Tabungan until the country’s financial crisis in 1997 caused the bank to collapse and the government took a 47 percent stake in the company.

The Indonesian government’s asset management company Perusahaan Pengelola Aset owns the 28 percent TPG hasn’t acquired. 

TPG tried to buy Bank Central Asia, Indonesia’s largest private bank, in 2002 but was beaten by US hedge fund Farallon Capital which paid $540 million for the bank. Last year TPG also mulled the possibility of buying into Indonesian airline Garuda after Jakarta sounded out bidders for a 49 per cent stake in the business.

But according to the UK newspaper Financial Times TPG decided against the idea when the government made it clear it would not give up majority control of the airline in any deal.

The FT also reported Ashish Shastry, the executive director of TPG’s south-east Asian office, said two weeks ago that TPG was preparing to invest $500 million to $2billion in Indonesia.

TPG declined to comment.