Jakarta. Thailand's second-largest lender by asset, Kasikorn Bank Public Company, or Kbank, has agreed to buy a majority interest in Bank Maspion Indonesia, a medium-sized Indonesian lender, becoming the latest regional bank taking part in the banking consolidation effort in Southeast Asia's largest economy. 

Kasikorn Vision Financial Company (KVF), a Kbank's wholly-owned subsidiary, Monday signed a conditional sale and purchase agreement to purchase 67.5 percent shares in the Indonesian bank. 

According to Bank Maspion's statement, its shareholders, namely Maspion, Alim Investindo, Husin Investama, and Maspion Investindo, would sell 12.46 percent, 8.17 percent, 2.81 percent, and 2.46 percent, respectively, to KVF.

Five other Bank Maspion shareholders also agreed to release their combined 4.11 percent ownership in the local lender to KVF. In addition, KVF would buy new shares from a Bank Maspion right issue. 

"With these purchases, KVF and Kbank will become the holders of 67.5 percent of Maspion Bank shares," Bank Maspion said. 

The deal is subject to approval from the Bank Of Thailand, the Financial Services Authority (OJK), and the local lender shareholder approval, Bank Maspion said. 

Indonesian banking authorities have become more accommodating to bank acquisition by foreigners in recent years to accelerate the industry consolidation. The Indonesian banking industry has long been inefficient and fragmented, with hundreds of small-sized lenders lacking the capital to raise their game. 

The OJK now allow foreigners to own a majority interest in a local lender as long they are willing to merge with other local lenders after the acquisitions, intending to trigger the much-needed consolidation in the industry.