According to an official information from BTMU available here on Wednesday, the strategic investment would be held in three phases.
In the first phase, BTMU would acquire 19.9 percent of the shares of Bank Danamon at a price of Rp8,323 per share or totaling Rp15.875 trillion.
In the second phase, BTMU hopes to acquire 20.1 percent more of the shares making BTMU a 40 percent shareholder of the bank. The second phase is expected to wrapped up in the second or third quarter of 2018 in line with the approval of the Financial Service Authority (OJK).
In the third phase, BTMU hopes to secure again approval to acquire more shares of Bank Danamon. In this phase, BTMU would offer opportunity for other shareholders to retain their shares or accept cash from BTMU.
In the third phase, MUFG hopes to control more than 73.8 percent of Bank Danamon shares.
"As a leading bank in Asia and Oceania, we are aware of the role of Indonesia as a driver of development in the region," Chief Executive Officer (CEO) of Mitshubishi UFJ Financial Group Inc. (MUFG) for Asia and Oceania, Takayoshi Futae said.
"We are confident the inclusion of MUFG as a shareholder of Bank Danamon would benefit the stakeholders including the workers , clients and business partners," Futae said.
Earlier, head of the Banking Supervision Department of OJK Aristiadi said that first MUFG would acquire the would be non majority portion.
Asia Financial (Indonesia) Pte is a subsidiary of Singapore`s Temasek, as the majority shareholder of Bank Danamon.
Currently Bank Danamon is 67.37 percent owned by Asia Financial (Indonesia) Pte, LTd, 6.5 percent by JPMCB-Frankiln Templeton Investment Funds and 25.7 percent by the public.
MUFG is not a new business player in Indonesia. MUFG already owns the majority stake in two banks - Bank of Tokyo Mitsubishi UFJ Ltd (BTMU) and PT Bank Nusantara Parahyangan Tbk.
BTMU has operated for almost 60 years in Indonesia with the status of Foreign Bank Branhc Officer.
Therefore, if BTMU became the holder of the majority shares in Danamon, it has to deal with the regulation of the Central Bank on "single presence policy" prohibiting investors to be majority shareholder in more than one bank.
(TZ.SYS/B/H-ASG/B003)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2017
