We’re seeing more interest from Japanese companies in Southeast Asian assets. Yesterday Japan’s second largest bank (by market cap) Sumitomo Mitsui Financial Group Inc made a bid for a 25% share of Malaysia’s fourth largest (by assets) RHB Capital Bhd.

Business Times reports that the Carlyle Group, a US private equity firm, has also put in an offer. The 25% currently belongs to Abu Dhabi Commercial Bank PJSC, which is looking to sell. The news took RHB Capital’s share price up 2.4% to a 14-year high, valuing the 25% stake at RM5 billion (US$1.66 billion).

While Japan’s recent disasters and subsequent economic downturn have sparked a new interest in overseas investments, Japan’s large corporations were already keen to move into Southeast Asia before the events, facing competition from their Chinese and South Korean counterparts. Takeda Pharmaceutical Co. and Toshiba Corp also announced yesterday a combined $16 billion in overseas takeovers. Mitsui Sumitomo Insurance Corp bought 50% of Indonesia’s PT Sinar Mas Multiarta this month for $820 million, while Mitsui & Co trading company grabbed a 30% share of Malaysia’s Integrated Healthcare Holdings for RM3.3 billion ($1.09 billion).

source & article: Business Times