Mitsubishi UFJ Financial Group’s (MUFG) core commercial banking subsidiary MUFG Bank has secured approval from the Financial Services Authority of Indonesia (OJK) to increase its investment in PT Bank Danamon Indonesia.
Image: MUFG has received OJK approval to increase its investment in Bank Danamon Indonesia. Photo: courtesy of PT Bank Danamon Indonesia Tbk.
The approval allows MUFG Bank to increase its stake in PT Bank Danamon to 40% through acquiring an additional 20.1% interest from Asia Financial (Indonesia) and other affiliated entities.
MUFG Bank is acquiring the stake as part of step two of the proposed transaction defined in its announcement in December 2017.
MUFG Bank said it intends to complete its acquisition of the additional 20.1% shareholding interests as soon as practicable, subject to other closing conditions customary for a transaction of this nature.
MUFG Bank will become a controlling shareholder with 40.0% shareholding interest, once the deal concludes.
In December 2017, MUFG entered into conditional share purchase agreements with Asia Financial (Indonesia) (AF) and other affiliated entities to purchase their shareholding interests in PT Bank Danamon Indonesia.
At that time, AFI and other affiliated entities hold in aggregate 73.8% of the total issued shares of Danamon.
Initially, MUFG agreed to acquire 19.9% of the total issued shares of Danamon, as part of the step one of the proposed transaction.
Once the step two of the proposed transaction completes, all other existing shareholders of Danamon can either remain as shareholders or receive cash from MUFG.
Established in 1956, PT Bank Danamon Indonesia has a network of more than 1,600 locations, including conventional branches, syariah units, subsidiary outlets and over 60,000 ATMs through partnership with ATM Bersama, PRIMA, and ALTO across 34 provinces.
The bank’s services can be accessed from Danamon Online Banking, D-Mobile and D-Card mobile application and SMS banking., in addition to physical network.
Danamon is said to be the exclusive issuer of Manchester United Debit /ATM and credit cards in Indonesia. It also issues American Express credit cards.
The bank offers a range of financial products such as Danamon Lebih, FlexiMax, Tabungan Bisa iB, Dana Pinter 50, KAB Bisa, and Primajaga Insurance.