Mitsubishi's plan to buy Bank Danamon up for discussion

News Desk

The Jakarta Post

Jakarta

Jakarta, posted: Wed, January 3, 2018 | 05:56 pm

A teller serves a customer at a Bank Danamon branch in Jakarta. (kompas.com/File)

The Financial Services Authority (OJK) says it is open for discussion to a plan by the Mitsubishi UFJ Financial Group (MUFG) to acquire a bigger stake in PT Bank Danamon Indonesia, one of Indonesia’s leading private lenders.

The MUFG and Bank of Tokyo already jointly own 19.9 percent of Danamon’s equity since Friday, paying Rp 8,323 (US$0.62), a share, but the giant Japanese holding financial company is looking to buy 73.8 percent more of the Indonesian company.

OJK’s 2016 regulation limits foreign ownership of any Indonesian banks up to 40 percent, but it will allow a controlling stake under certain circumstances: that it must support Indonesian economic development through the relevant bank; it must obtain a recommendation letter from the financial supervisory authority in its originating jurisdiction and it must have an investment rating above a required level, depending on the investment vehicle.

OJK was open for discussion with the MUFG regarding its plan, chairman Wimboh Santoso was quoted as saying by kompas.com.

“(But) we want the foreign stakeholders to be spread more evenly, not just concentrated in one bank,” he said.

The MUFG bought the initial Danamon shares from Asia Financial Indonesia (AFI), a wholly-owned subsidiary of Fullerton Financial Holdings of Singapore. (sha/jlm/bbn)

 

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