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View all search resultsEmtek to acquire Bank Fama in $63 million deal
The media conglomerate plans to diversify into finance
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M
edia conglomerate Emtek, through subsidiary PT Elang Media Visitama (EMV), will acquire small lender PT Bank Fama International (FAMA) in a Rp 908 billion (US$63.21 million) transaction, as the firm seeks to diversify into finance.
Emtek plans to acquire a 93 percent stake in Bank Fama, pending approval from an extraordinary shareholder meeting on Dec. 6, according to a joint announcement published on Friday.
The remaining 7 percent share will be held by PT Nusantara Berkat Agung. So far, little is known about this company, which is a shareholder of publicly listed e-commerce giant Bukalapak.
“The acquisition represents Emtek’s strategic investment plan that hopes to raise the company’s revenue in the future and the valuation of EMV,” Emtek said in the announcement.
Read also: Grab buys Tokopedia’s, Lippo’s shares in OVO
Bank Fama's acquisition comes not long after Emtek reportedly bought a 12.4 percent stake in e-wallet OVO from Singapore-headquartered Grab, which had to divest shares to meet foreign-ownership caps in Indonesia.
Big companies, including banks and tech unicorns, have been acquiring small banks in Indonesia this year to diversify into digital banking.
Grab and Emtek held several events together in recent months, signaling closer ties between the two companies.
Meanwhile, Bank Fama joined Emtek to meet minimal capital requirements set by Financial Services Authority (OJK) Regulation No. 12/2021.
The regulation requires all banks to have at least Rp 2 trillion in core capital by the end of 2021, but Bank Fama only had Rp 1.03 trillion in core capital as of the first half of this year, according to the lender's financial report to the OJK.
Read also: Indonesia sharpens legal framework for digital banking
Banks that cannot meet the minimum capital requirement are required to either consolidate, merge or find investors willing to inject fresh capital.
"This [acquisition] would also allow the bank to utilize [Emtek's] financial capabilities, global network and expertise to grow further,” Bank Fama explained in the same announcement.
