KUALA LUMPUR -- A leading Malaysian financial conglomerate, Commerce Asset-Holding Berhad (CAHB), has announced an agreement to acquire 51 percent of Indonesian PT Bank Niaga TBK, reports said Monday.

CAHB on Saturday had signed the deal with Indonesian Bank Restructuring Agency (IBRA) requiring it to pay some 1,060 billion rupiah ($114.63 million) for the 51 percent stake in Bank Niaga.

The transaction, the first-ever cross-border acquisition of an Indonesian bank by a financial institution after the 1997 Asian financial crisis, was expected to create one of the leading financial institution platforms in Malaysian and Indonesia, CAHB Director Rozali Mohamed Ali was quoted as saying by the ****New Straits Times**** newspaper.

"As the ASEAN (Association of Southeast Asian Nations) region liberalizes and member nations move towards greater economic integration and interdependence, we expect a significant increase in trade and investment flows in the region.

"The acquisition will position CAHB with strong foundations in two of the regions most important markets, with a recognizable focus on customers and quality," said Rozali.

"This is a groundbreaking development that will enhance greater economic integration and inter-dependence among ASEAN countries especially with the onset of AFTA (ASEAN Free Trade Area)," CAHB said in a statement released Saturday.

CAHB is the second largest banking group in Malaysia with a market capitalization of over $2.2 billion and total group assets of almost $21 billion.

Bank Niaga is the ninth largest bank in Indonesia with assets of over $2.7 billion as of June 30, 2002 and a distribution network of 144 branches, DPA reported.