Mitsubishi UFJ Financial Group Inc. unit Bank of Tokyo-Mitsubishi UFJ Ltd. completed the acquisition of a 19.9% stake in PT Bank Danamon Indonesia Tbk, the first step of a three-part plan by the Japanese bank to acquire a 73.8% stake in the Indonesian bank.

Bank of Tokyo-Mitsubishi said Dec. 29 that it acquired 1,907,344,030 shares of Bank Danamon at 8,323 Indonesian rupiah per share, or 15.875 trillion rupiah in total. The bank is buying the stake in Bank Danamon from Asia Financial (Indonesia) Pte. Ltd. and other affiliated entities.

Under the second step, the Japanese bank plans to boost its stake in Bank Danamon to 40% with a further 20.1% stake purchase, subject to regulatory approvals. The second step is expected to be completed between the second and third quarter of 2018. In the third and final step, the bank will seek to raise its stake beyond 40% in the Indonesian lender.

Asia Financial (Indonesia) is a wholly owned unit of Singapore-based Fullerton Financial Holdings Pte. Ltd., which in turn is a unit of Singaporean sovereign wealth fund Temasek Holdings (Pte.) Ltd.

As of Dec. 28, US$1 was equivalent to 13,542 Indonesian rupiah.