JAKARTA (TheInsiderStories) – One of the largest bank in Indonesia, PT Bank Mandiri Tbk (IDX: BMRI) plans to sell all shares of PT Mandiri AXA General Insurance (MAGI) to AXA Asia, said the director last week. The state-owned bank plans to sell 40 percent of it shares at the company.
Based on the statement by Bank Mandiri’ director Hery Gunardi, after sell part of MAGI shares, the company will continue to release all general insurance company next year. After the share sale, the lender will hold 20 percent shares of MAGI while AXA Asia has 80 percent shares.
Beside having general insurance affiliated company with AXA Group, the bank also has a life insurance company PT AXA Mandiri Financial Services (AXA Mandiri). By removing the entire stake in MAGI, Bank Mandiri will strengthen its business line on life insurance, said the director.
Previously, to meet the Provisions of the Insurance Act Number 40 of 2014, AXA Financial Indonesia closed PT AXA Life Indonesia’ business. It was done after two insurance companies from AXA Group, namely PT AXA Financial Indonesia and AXA Life had merged. The company operates under the name AXA Financial Indonesia with all of AXA Life assets and their liabilities were transferred to AXA Financial.
Currently, Bank Mandiri plans to acquire local lender, PT Bank Permata Tbk (IDX: BNLI). According to CEO of the bank Kartika Wirjoatmodjo, currently his party is conducting due diligence regarding the acquisition planned.
“We are in the negotiation process with both of Bank Permata owners, Standard Chartered and PT Astra International Tbk (IDX: ASII), if it is suitable, we will acquire Bank Permata,” he said.
But he could not provide a detailed explanation of the valuation in the acquisition process. It is also at the same time to refute rumors that report valuation of the acquisition of Bank Permata.
Wirjoatmodjo revealed that his party had communicated with the Financial Service Authority and the State Own ministry regarding the acquisition. This communication is also conducted to anticipate the ownership status Bank Mandiri in Bank Permata, which also has two banks, namely PT Bank Syariah Mandiri and PT Bank Mantap.
Regarding funding, Wirjoatmodjo said that it had sufficient funds to acquire Bank Permata. However, this is still determined by the negotiations carried out.
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