SSEK Advises Woori Bank on Acquisition of Stake in Listed Indonesian Bank

SSEK acted as Indonesian counsel to Woori Bank of South Korea in its purchase of a 33 percent stake in Indonesia's Bank Himpunan Saudara 1906 for 713.1 billion Rupiah, about US$61 million.

Securing approval from Indonesia's central bank, Bank Indonesia, for the purchase took about 18 months amid an evolving regulatory environment for bank acquisitions in the country. Singapore's DBS Group last year cancelled the planned acquisition of an Indonesian bank after it failed to receive Bank Indonesia approval for the deal.

Bank Saudara is listed on the Indonesia Stock Exchange, so this complex deal also required the navigation of capital market rules for bringing in a foreign bank as a significant shareholder. Woori Bank has had a presence in Indonesia since 1992 through Bank Woori Indonesia, which deals mainly with Korean companies operating in Indonesia.

With this purchase of a 33 percent stake in Bank Saudara, the Korean lender hopes to increase its presence in the dynamic Indonesian market.

Bank Saudara is part of the Medco Group, a business conglomerate involved mainly in the energy sector.