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Bukalapak, Salim Group to acquire Allo Bank
The acquisition continues the trend of corporations investing in digital banks.
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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
H Holdings, a company affiliated with ride-hailing company Grab, is also set to get a slice of the pie by acquiring a 2.07 percent stake in the lender.
Bukalapak announced in December 2021 a shift in its initial public offering (IPO) fund spending plans to accommodate buying into new companies, among other corporate actions.
“We are optimistic that this development will keep supporting Bukalapak’s move toward sustainable growth and profitability,” Bukalapak president commissioner Bambang Brodjonegoro said of the shift.
Read also: Bukalapak shifts spending of IPO funds
Bukalapak and Salim Group’s investment in Allo Bank continues a trend started by ride-hailing giant Gojek, which acquired a 22 percent stake in digital lender Bank Jago, to diversify its business.
Mega Corp acquired Allo Bank, then named PT Bank Harda Internasional (BBHI), from PT Hakim Putra Perkasa last year. The rights issue dilutes Mega Corp's ownership in the digital lender from 90 percent to 60.8 percent.
