StanChart, Astra revise sale price for proposed Bank Permata deal

FOR the proposed sale of their stakes in Bank Permata, Standard Chartered (StanChart) and PT Astra International Tbk will receive a total consideration that is 1.63 times the Indonesian lender's book value.

The sale price was changed from the earlier announced 1.77 times of Permata's book value, according to a regulatory filing on Tuesday by Jardine Cycle & Carriage (Jardine C&C), which owns 50.1 per cent of Astra.

StanChart and Astra, each holding 44.56 per cent of shares in the Indonesian lender, are looking to sell their entire stakes to Bangkok Bank in an all-cash deal first disclosed in December last year.

The revised illustrative sale price amounts to some US$2.26 billion in total, with half or US$1.13 billion going to Astra and StanChart each, based on 1.63 times book value as at Dec 31, 2019.

The actual price will be determined based on Permata's published book value for the period ended March 31, 2020.

The market value of the sale shares is about US$992.2 million, calculated based on the volume-weighted average price of 1,228 rupiah per Permata share for all trades done on April 17.

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The previously announced consideration had been estimated at US$2.6 billion based on 1.77 times book value as at Sept 30, 2019, equivalent to a price of 1,498 rupiah per Permata share.

Jardine C&C said that Astra, StanChart and Bangkok Bank on Monday signed an amendment letter to their Dec 12 conditional share purchase agreement.

These amendments, including the revised sale price, are subject to the deal completing by June 30.

If completion does not occur by that date, the amendments will automatically be deemed null and void, and the original terms and conditions - including the original sale price - will prevail.

Based on the audited financial statements of the Jardine C&C group for the fiscal year ended Dec 31, 2019, the carrying value of the Permata sale shares is US$758.3 million. The revised illustrative share price represents a gain on disposal of some US$370.6 million over the carrying value of the sale shares, Jardine C&C said.

Net profit attributable to the sale shares is about US$52.4 million based on Jardine C&C's FY2019 financial statements.

Jardine C&C shares fell S$0.02 or 0.1 per cent to trade at S$21.05 as at 9.03am on Tuesday.