Indonesia's Financial Services Authority expects Japan's Mitsubishi UFJ Financial Group Inc. to start acquiring a stake in PT Bank Danamon Indonesia Tbk in early 2018, Bloomberg News reported Dec. 6, citing Aristiadi, head of foreign bank supervision at the regulator.
The group, through unit Bank of Tokyo-Mitsubishi UFJ Ltd., will likely buy 40% of Bank Danamon in two phases, the first of which may occur in early 2018, Aristiadi told a group of reporters in Jakarta.
Under the first phase, the Japanese bank will acquire a minority stake without having to obtain regulatory approval. However, it will need to obtain one if it decides to raise its shareholding to 40% or more. The country currently allows foreign investors to own up to 40% of local banks.
On Nov. 9, The Nikkei reported that Bank of Tokyo-Mitsubishi was looking to buy shares in Bank Danamon, with an initial investment of ¥200 billion. Bank Danamon separately said its majority shareholder Asia Financial Indonesia Pte, which is owned by Singaporean sovereign wealth fund Temasek Holdings (Pte.) Ltd., had received an "expression of interest" in its stake in the bank.
Heru Kristiyana, a commissioner at Indonesia's Financial Services Authority, confirmed that Bank of Tokyo-Mitsubishi was indeed eyeing the Indonesian lender, according to a Nov. 10 Reuters report.
Representatives from both Mitsubishi UFJ Financial and Temasek declined to comment, Bloomberg said.
As of Dec. 6, US$1 was equivalent to ¥112.25.