One of the country's largest banks bought a $220 million majority stake in Indonesia's Bank Maspion on Monday.
The deal will give Kasikornbank (KBank), the kingdom's second-largest lender by assets, 67.5% of Maspion's shares and is expected to be finalised by the end of the year, the Thai lender said in a message to the Stock Exchange of Thailand.
It comes as the country looks for investment abroad with the local economy stagnating under low interest rates and burdensome household debt.
Indonesia -- the region's biggest economy -- is a particular target, with the largest commercial firm and rival Bangkok Bank snapping up a $2.28 billion stake in Bank Permata two years ago.
The latest deal will allow KBank to establish a more permanent foothold in Indonesia, following a 2017 decision to invest $20 million for 10 percent of Bank Maspion.
KBank opened its first branch in Vietnam last year, and is establishing a presence in Myanmar -- having bought a 35% stake in Ayeyarwaddy Farmers Development Bank in 2020 -- in addition to Laos and Cambodia.
Shares of PT Bank Maspion Indonesia TBK rose more than 10% on Monday morning following the announcement.