SEOUL, Jun. 29 (Korea Bizwire) — Shinhan Bank, South Korea’s third-largest commercial bank by asset, said Monday that it has concluded a deal to acquire a controlling stake in an Indonesian bank as part of its efforts to beef up its overseas presence.
Under the contract, Shinhan Bank buys 75 percent in Centratama Nasional Bank based in Surabaya, east Java, according to the lender.
The Indonesian bank, founded in 1992, has 41 sales channels in the eastern Java region with assets totaling US$81 million.
Shinhan Bank expects the latest purchase to create synergy in the Southeast Asian country following its acquisition of a 40 percent stake in Jakarta-headquartered Bank Metro Express (BME) in April.
The Korean lender said it will merge the two Indonesian banks next year to strengthen its business footing and banking network in the Southeast Asian region, after buying an additional 50 percent share in the BME later this year.
Shinhan Bank now operates 74 branches in 16 countries including Vietnam, Cambodia and Hong Kong.