TEMPO.CO, Jakarta - The commercial bank belonging to Mitsubishi UFJ Financial Group, Inc., The Bank of Tokyo-Mitsubishi UFJ, Ltd. (MUFG), has signed a shares purchase agreement with Asia Financial (Indonesia) Pte. Ltd. (AFI). With the deal, MUFG will have a majority share in PT Bank Danamon Indonesia Tbk.
AFI is a subsidiary of Fullerton Financial Holdings Pte. Ltd., which currently owns 73.8 percent stake in Bank Danamon.
"[The purchase] will push MUFG's growth strategy in Asia and Oceania, as well as contribute to the growth of Indonesia's banking sector," the company's release said.
MUFG will buy the shares in three stages. First, MUFG will buy 19.9 percent stake in Bank Danamon for Rp8,323 (US$0.61) per share, or about S$1.171 billion. AFI will remain as a majority shareholder during this stage.
For the second stage, MUFG seeks to acquire an approval to buy an additional stake of 20.1 percent, thus increasing its ownership over Danamon to 40percent. The second stage is scheduled to be completed by the second or third quarter of 2018.
After stage two is completed, MUFG plans to increase its stake to more than 73.8 percent, making it the controlling shareholder in the Indonesian bank.
MUFG's investment in Bank Danamon is a breakthrough for the company's strategic plan in the Asia and Oceania region. In Indonesia, MUFG has been operating for more than 50 years.
ANDITA RAHMA