Sumitomo Mitsui Financial Group said it will initially pick up a 24.26 per cent stake in the lender for $937m, representing a 14 per cent premium on the last traded price of BTPN’s shares.
The Japanese bank added that it would up its stake to 40 per cent if it gained regulatory approval.
TPG and Northstar could be in line to reap more than 7.7 times their initial $200m investment through the part-exit if a similar price is paid for the remaining stake.
Previous reports named Japanese banking majors Mitsubishi UFJ Financial Group, Mizuho and SMFG as potential suitors for the business along with a Taiwanese bank and a group of other banks in Southeast Asia.
The FT had said that although several Chinese banks expressed interest in BTPN they were unlikely to pay the expected asking price of five times its book value.
Reuters said its calculations showed the deal was struck at a price-to-book ratio of about 4.5, representing on the most expensive bank deals in Asia.
TPG is currently believed to be targeting $4bn for its latest Asia fundraise.
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