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Arqaam advises Bank Kesawan on share sale to QNB

By Staff

Dubai-based Arqaam Capital, an investment bank, has announced that it recently acted as the exclusive financial adviser to Indonesia’s Bank Kesawan during its successful Rp.734 billion ($73m) rights issue.

the investment bank played a crucial role in facilitating what is a unique transaction, drawing upon its expertise in cross-border M&A for mid-cap financial institutions, a statement by Arqaam Capital said.

This deal follows the Arqaam's support of CTI Group, a Jordan-based cement and clinker trading company in exploring strategic options to expand into new markets and products through its investment in Indonesia’s Bosowa Corporation’s cement business.

Completed in March 2010, Arqaam’s expertise in the complexities of cross-border transactions, including structuring, governance issues and the regulatory environment was instrumental in the success of the deal, the statement added.

Following the closing of the rights issue, Qatar National Bank (QNB) emerges as the majority shareholder in Bank Kesawan, controlling 69.6 per cent of its shares. The funds raised from the rights issue will strengthen the bank’s capital base and enable Bank Kesawan to be more active in participating in the growing Indonesian economy and provide better services to its customer.

“This transaction is unique because it is the first time a Middle Eastern company has taken a controlling shareholding in the Indonesian banking sector. Bank Kesawan and QNB stand to reap significant benefits from their new relationship. Arqaam’s experience in the South East Asia region was a significant factor in completing the transaction quickly,” said Tamer Makary, Head of Corporate Finance of Arqaam Capital.

“Successfully delivering growth-driven cross-border transactions is part of Arqaam’s pioneering strategy to connect corporate organisations across the ‘New’ Silk Road between Southeast Asia, the Middle East and Africa.  In the past 12 months, Arqaam has facilitated two successful transactions between companies in the Middle East and Indonesia and is actively working on a number of comparable situations,” he added.

“Following the successful completion of the rights issue, Bank Kesawan is now well positioned to work towards its vision of being the leading bank in its sector. I would like to thank Arqaam Capital whose expertise was pivotal to the successful conclusion of the rights issue,” said Gatot Siswoyo, President Director, Bank Kesawan.