REPUBLIKA.CO.ID, JAKARTA - HSBC Holding Plc plans to sell its majority shares in Bank Ekonomi. HSBC has 99 percent shares worth 670 million USD in the bank. This sale in lines with HSBC's plans to slim down its business and increase the profit.
"HSBC is still reviewing strategic options for 99 percent shares after the Indonesian Stock Exchange asked us to clarify our position on speculation market. If the sale is approved (by Indonesian central bank), the money will be re-invested in the main market of HSBC Group in Indonesia," President Director of HSBC, Stuart Gulliver said on Monday.
HSBC bought 88.9 percent shares in Bank Ekonomi worth 607.5 million USD in October 2008. The London-based bank then bought 10 percent shares worth 71.6 USD in August 2009.
Gulliver has sold and closed more than 50 businesses as their profit declining in last two years. The company's loan book increased by 61 percent from 2010 to 2012. Based on data of Thomson Reuters, HSBC had market capitalization up to 674 million USD. The bank operated in Indonesia in 1884 till now and has 115 branches in 10 cities.
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