JAKARTA (TheInsiderStories) – Japanese lender, MUFG Bank Ltd. releases 157 million shares of PT Bank Danamon Indonesia Tbk (IDX: BDMN) to fulfill the free float provisions, said the managing director today. The shares are sold at Rp2,750 (US$0.19) a unit.
MUFG Managing Director Masashige Nakazono said in a statement, the company’ ownerships at the publicly listed firm decreased from 94.10 percent to around 92.49 percent after the transaction.
As known, the strategic investment in the local bank has proceeded in stages since December 2017 and completed on April 29, 2019. After the completion, Bank Danamon became a consolidated subsidiary of MUFG and MUFG Bank upon the 3rd step of additional investment.
Indonesia’ Financial Service Agency has granted approval for MUFG Bank, to increase its investment in Bank Danamon on July 31, 2018. The bank increased its investment in the local bank to 40.0 percent by acquiring (directly or indirectly) an additional 20.1 percent from Singapore’ Asia Financial (Indonesia) Pte. Ltd. (AFI) and other affiliated entities, as part of second step of the proposed transaction.
Upon the completion, MUFG Bank became a controlling shareholder with 40.0 percent, AFI with 33.8 percent and public 26.2 percent in shareholding interests in Bank Danamon. Then in May 1, 2019, Bank Danamon and its other unit, PT Bank Nusantara Parahyangan Tbk (IDX: BBNP), officially merged after completed the legal process.
Following the legal merger, all rights and obligations, as well as assets and liabilities of Bank BNP shall be transferred to Bank Danamon. With the completion, MUFG Bank will become the controlling shareholder of the newly merged bank.
In Indonesia, MUFG Bank has been operating for 50 years and currently has full services two branches in Jakarta and Surabaya, and nine service points across the country.
In Southeast Asia, MUFG Bank has acquired77 percent stake in Bank of Ayudhya Public Company Limited (Krungsri) in Thailand, 20 percent in Vietnam lender, VietinBank and 20 percent in Security Bank Corporation in the Philippines.
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