China Construction Bank (CCB) has agreed to purchase a controlling stake in Indonesian lender PT Bank Windu Kentjana International.
Indonesian tycoon Johnny Wiraatmadja, who held nearly 66% of shares in Bank Windu as of June 2015, agreed to the agreement, the Indonesian lender said in a stock exchange filing.
Bank Windu recently agreed to acquire local bank PT Bank Antardaerah. Following the completion of the merger, it will issue new shares worth about nearly IDR1 trillion ($70 million), most of which will be purchased by CCB.
The deal, which in a singular case of an overseas bank being permitted to acquire over 40% stake in an Indonesian lender, may pave the way for more foreign banks seeking a larger play in Indonesia.
"The agenda is to support the consolidation process, so the supervisor can give more leeway, for more than 40 percent," Nelson Tampubolon, banking supervisor at the Indonesia Financial Services Authority (OJK), told Reuters.
Bank Windu manages total assets of stood at IDR10trn, and operates with 17 branches, 77 branch offices and 32 cash offices throughout Indonesia.