Mar 24, 2023
Bajaj Finance, Cathay Financial Weighing CBA Indonesia Bids, Sources Say
(Bloomberg) -- Bajaj Finance Ltd. and Cathay Financial Holding Co. are among the firms considering bids for Commonwealth Bank of Australia’s business in Indonesia, people familiar with the matter said.
The Indian and Taiwanese companies have had talks with advisers about potential offers for PT Bank Commonwealth, the people said. Other companies in the industry could bid for the business, the people said. A sale could value the business at several hundred million dollars, Bloomberg News has reported.
Considerations are at an early stage, the bidders could decide not to proceed and CBA may choose not to sell the unit, the people said. Representatives for Bajaj and CBA declined to comment, while Cathay Financial didn’t immediately respond to requests for comment.
Bank Commonwealth focuses on retail banking as well as financial offerings for small-to-medium enterprises in Indonesia, according to its website. It also provides wealth management services and had total assets of 20 trillion rupiah ($1.3 billion) as of April 2021.
A sale would follow CBA’s disposal last year of a 10% stake in China’s Bank of Hangzhou Co. to arms of the Hangzhou municipal government for 8.3 billion yuan ($1.2 billion).
--With assistance from Harry Brumpton.
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