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Bukalapak, Salim Group to buy into digital lender Allo Bank
The acquisition continues the trend of corporations investing in digital banks.
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Bank Harda Internasional (BBHI), pictured in an undated photo above, has rebranded itself as Allo Bank as it transforms into a digital lender. (Courtesy of Bank Harda)
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-commerce firm Bukalapak and diversified conglomerate Salim Group are set to acquire stakes in digital lender Allo Bank, continuing the growing trend of corporations investing in digital banks to diversify their services.
Bukalapak is to own 11.49 percent, and Salim Group, through subsidiary PT Indolife Investama Perkasa, will own 6 percent of the publicly listed digital lender after a rights issue, according to an Allo Bank document filed at the Indonesia Stock Exchange (IDX).
The acquisition would make Bukalapak and Salim Group the second- and fifth-largest stakeholders in Allo Bank, respectively, behind financial services firm PT Mega Corpora (60.87 percent), Singapore’s Abadi Investments Pte. Ltd (7 percent) and the public (9.96 percent).
Allo Bank raised Rp 4.80 trillion (US$335.12 million) through the rights issue, the proceeds from which will go to raising core capital in complying with Financial Services Authority (OJK) regulations.
“And then the funds will be used for the development of the company’s business, including developing business activities in the field of credit with technological innovations, or what is known as digital banking,” reads the document.
Read also: ‘Bank Jago effect’: Small banks’ shares surge on consolidation, digital bank boost
