Skip to Content

Monday, August 19th, 2019

Japan's MUFG seeks majority stake in Indonesia's Bank Danamon

Closed
by December 26, 2017 General

FILE PHOTO - People are reflected in the logo of Mitsubishi UFJ  Financial Group's bank of Tokyo-Mitsubishi UFJ in Tokyo

Mitsubishi UFJ Financial Group Inc (>> Mitsubishi UFJ Financial Group Inc) said on Tuesday it would seek to buy a 73.8 pct stake in Indonesia’s Bank Danamon (>> Bank Danamon Indonesia Tbk PT) from Singapore’s Temasek Holdings, as Japan’s largest lender by assets looks to expand its presence in Southeast Asia.

Mitsubishi UFJ Financial Group Inc (>> Mitsubishi UFJ Financial Group Inc) said on Tuesday it would seek to buy a 73.8 pct stake in Indonesia’s Bank Danamon (>> Bank Danamon Indonesia Tbk PT) from Singapore’s Temasek Holdings, as Japan’s largest lender by assets looks to expand its presence in Southeast Asia.

As the first stage of the transaction, MUFJ, through its core unit Bank of Tokyo-Mitsubishi UFJ, would acquire 19.9 percent stake in Danamon at 8,323 rupiah per share for 15.875 trillion rupiah (£87.60 million), the company said.

The bank will then seek to increase its stake to 40 percent and eventually to 73.8 percent, pending regulatory approvals.

At 8,323 rupiah per Danamon share, the deal is potentially valued at about $4.31 billion.

Faced with sluggish growth at home, MUFG has expanded its presence in Southeast Asia in recent years. The bank holds stakes in Vietnam’s Vientinbank, Thailand’s Bank of Ayudhya (>> Bank of Ayudhya PCL) and Security Bank Corp (>> Security Bank Corporation) of the Philippines.

Indonesian laws restrict single ownership in banks to 40 percent, but the country can relax these curbs on special grounds, including if the investing bank is financially strong.

(Reporting by Chris Thomas in Bengaluru; Editing by Sriraj Kalluvila)

By Chris Thomas

Previous
Next