TPG, Northstar in partial exit from Indonesia’s BTPN

According to a statement, SMBC will buy 40% of BTPN once it wins regulatory approval. The Japanese group will start by acquiring 24.26% through the purchase of 1.4 billion shares at IDR6,500 apiece - a 14% premium on the last trading price - for a total consideration of IDR9.12 trillion ($939 million).

The bulk of the shares - 16.87% - will be purchased from TPG Nusantara (TPGN), an investment vehicle set up by TPG and Northstar when they acquired a 71.61% stake in BTPN in 2008 for approximately $200 million. Government of Singapore Investment Corporation (GIC) and Noonday were co-investors in the deal.

TPGN will exit another 15.74% in the bank once SMBC receives clearance to raise its overall holding to 40%.

The investors agreed to five-year lock-up that expired in March. TPGN's stake was later trimmed to 59.7% after a BTPN rights issue in December 2010, and then to 57.9% after International Finance Corporation (IFC) completed a debt-to-equity conversion.

BTPN now has a market value of $3.45 billion, with 1,140 branches across 250 cities, according to its 2012 annual report. The bank claims to have grown assets, deposits and capital fivefold in the last five years. Profit for 2012 reached IDR1.98 trillion ($203 million), up 41.3% year-on-year.

SMBC - which is a unit of Japan's third-largest lender by assets, Sumitomo Mitsui Financial Group (SMFG) - says it intends to cooperate with BTPN to diversify its business in Asian markets. It expects Indonesia's economy to record rapid and sustainable growth driven by its large population and the expansion of the middle class.

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• Topics
• Southeast Asia
• Financials
• Exits
• Buyout
• TPG Capital
• Northstar Group
• Financial Services
• Indonesia
• Exit
• Trade sale