Arqaam Capital Acts as Exclusive Financial Adviser to Indonesia’s Bank Kesawan for share sale to Qatar National Bank (QNB)

Sunday, February 13, 2011

Deal signals growing appetite for growth-driven cross border transactions

Dubai based Arqaam Capital today announced that it recently acted as exclusive financial adviser to Indonesia’s Bank Kesawan during its successful Rp.734 billion (US$ 73 million) rights issue.

Arqaam Capital 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. This deal follows Arqaam Capital’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.

Following the closing of the rights issue Qatar National Bank (QNB) emerges as the majority shareholder in Bank Kesawan controlling 69.6% 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.

Tamer Makary, Head of Corporate Finance of Arqaam Capital, said;

“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.

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.”

Gatot Siswoyo, President Director, Bank Kesawan said:

“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.”

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