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Thailand's Kbank buys about 10% stake in Bank Maspion Indonesia

[BANGKOK] KBank, Thailand's fourth largest commercial bank, has taken a 9.99 per cent stake in Bank Maspion Indonesia for US$20 million to help strengthen its regional presence, the bank said on Monday.

The price paid was 615 rupiah (S$0.06) per share, nearly 62 percent premium to the stock's closing price on Friday. The shares traded over 2 per cent higher on Monday. "Bank Maspion is the best partner for Kbank to establish a presence in the Indonesian market," Kbank president Predee Daochai said in a statement, noting its activity in logistics and property development.

The move would increase Kbank's presence in Southeast Asia, China, Japan and South Korea, which it considers a crucial market for Thai businesses, according to a company statement.

Kbank already has a partnership with Indonesia's top lender, Bank Central Asia.

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Bank Maspion would benefit from Kbank's expertise in digital banking and SME banking operations, said President Director and CEO of Maspion Group in a statement.

Indonesia's banking sector limits foreign ownership of a financial institution to 40 per cent.