HONG KONG (Reuters) - BOC Hong Kong Holdings Ltd (2388.HK), a unit of Bank of China Ltd (3988.HK) (601988.SS), said on Tuesday it had agreed to acquire Indonesia and Cambodia businesses from its parent for about $377 million, as parts of its push into Southeast Asia.
The latest move comes after BOC Hong Kong last year raised about $10 billion by divesting its holding in Hong Kong-based banks, and said a part of the proceeds would be used to expand its presence in ASEAN (the Association of South East Asian Nations).
On Tuesday, BOC Hong Kong said it would acquire its parent’s Indonesian business for HK$1.6 billion ($206.15 million), and it will pay $171 million for the Cambodian operations in two separate transactions that are subject to regulatory approvals.
“The proposed acquisitions of these two branches will further expand BOC HK’s regional network, in line with the long-term overseas development strategy of the BOC Group,” Chief Executive of BOC Hong Kong Yue Yi said in a statement.
Goldman Sachs (GS.N) acted as financial adviser to BOC Hong Kong for the two acquisitions.
($1 = 7.7613 Hong Kong dollars)
Reporting by Sumeet Chatterjee; Editing by Keith Weir