Saturday, 22 February 2020

Cathay Life Buys 40% Stake in Mayapada

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  • Dr. Tahir, founder and owner of the Mayapada Group. TEMPO/Dwianto Wibowo

    Dr. Tahir, founder and owner of the Mayapada Group. TEMPO/Dwianto Wibowo

    TEMPO.CO, Jakarta - Cathay Life Insurance Co. Ltd., a subsidiary of Taiwanese investment company Cathay Financial Holding Co Ltd., agreed to acquire a 40 percent stake in PT Bank Mayapada Internasional Tbk. The acquisition value is US$278 million or equivalent to Rp3.52 trillion.

    Cathay Financial president Lee Chang-ken said the acquisition is in line with the company's target to expand in the ASEAN region. Chang-ken told the Taipei Times yesterday that the acquisition will be done in two stages. The first phase will be completed in the first quarter of 2015 while the second phase awaits the approval from Indonesia's Financial Services Authority (OJK).

    Mayapada corporate secretary Rudy Mulyono said that once the acquisition is finalized, Mayapada have the chance to aim at Taiwanese export-import businesses. "For us, this is good for knowledge and technology transfer, as well as market expansion," Rudy told Tempo yesterday.

    Cathay Life is Taiwan's largest insurance company based on the value of its assets. Mayapada is a medium-scale commercial bank with 175 branches throughout Indonesia. The bank focuses on banking retail, corporations, and foreign exchange businesses. 

    ODELIA SINAGA | DEWI SUCI | ANDI RUSLI | ABDUL MALIK