The Seoul-based company, a subsidiary of APRO Services Group focusing on consumer financing, will purchase a 40 percent stake, or equal to 202,923 shares, which will be issued by Bank Andara, according to a prospectus published on Saturday.

The prospectus showed that both parties had signed a conditional share purchase agreement on Friday, so that APRO would become the bank'€™s controlling shareholder.

'€œThe purchase will be completed after prerequisites are met, such as the results of fit and proper tests and an acquisition permit issued by the Financial Services Authority [OJK] as well as approval from a shareholders meeting,'€ the prospectus revealed.

It was stated in the prospectus that the bank planned to hold an extraordinary shareholders meeting to decide on the purchase on Dec. 23 and the acquisition process would be complete on Feb. 24 next year.

'€œThe publication is part of the requirements for acquisition, which will be followed by a fit and proper test by the OJK, and we hope to complete the entire process in the first quarter next year,'€ Bank Andara technology and operations director Irianto Kusumadjaja said in a text message.

The prospectus shows that the major shareholder in Bank Andara, at 22 percent, was the US aid agency Mercy Corps as of Dec. 20, 2012.

The bank'€™s remaining shareholders are US investment bank Developing World Markets Inc. (DWM) with 21.47 percent, global financier International Finance Corporation (IFC) (19.9 percent), German financing firm Kreditanstalt für Wiederaufbau (KfW) (15.81 percent), the Netherlands foundation Stichting Hivos-Triodos Fund (15.51 percent) and Balinese investor I Wayan Gatha (5.31 percent).

After the acquisition, APRO Financial Co. Ltd. will become the bank'€™s controlling shareholder with 40 percent shares, while the remainder will be held by IFC (19.9 percent), Mercy Corps (13.2 percent), DWM (12.88 percent), KfW (9.48 percent), Stichting Hivos-Triodos Fund (9.3 percent) and I Wayan Gatha (3.19 percent).

In the prospectus, APRO said it was planning to boost the growth of the micro, small and medium enterprise (SME) segments through banking products and services, while the bank expected to improve its capacity and infrastructure.

The bank also aimed for a strategic synergy with APRO and sought the chance to achieve inorganic growth, the publication shows.

'€œThere will be no big change and Bank Andara will remain in its current improving condition, because our main focus is to increase our capital structure,'€ Irianto said.

Through the acquisition, APRO is expected to inject additional capital worth Rp 450 billion (US$32.87 million), bringing Bank Andara'€™s total capital to Rp 750 billion.

Bank Andara is a BUKU 1 bank with total equity of Rp 177.4 billion and total assets of Rp 1.01 trillion as of 2014. BUKU 1 banks are those with a core capital of below Rp 1 trillion.

Separately, OJK director of banking licenses Ahmad Berlian said the financial regulator had yet to receive the acquisition proposal from APRO, adding that Bank Andara might have to hold an extraordinary shareholders meeting before the document could be submitted.

'€œThe basic mechanism of acquisition begins with an approval from the extraordinary general shareholders meeting and completion of required documents before a proposal is submitted to the OJK,'€ Ahmad said.

'€” Tassia Sipahutar contributed to the story

Popular

Indonesian workers in Japan face growing stigma after viral incidents

Political motivations behind rising cyberattacks in mid-2025, report says

High rice prices, education costs push up inflation to 2.37 percent in July