JAKARTA (TheInsiderStories) – LINE Financial Asia (NYSE:LN/TSE:3938), a unit of Japan’s LINE Corporation will acquire 20 percent of PT Bank KEB Hana Indonesia Tbk, a foreign private lender, through a share subscription agreement. No further details on the value of transaction.
Based on the company statement released on Friday (26/10), a move designed to expand LINE’s digital banking services in Indonesia. Both companies expressed their commitment to work together to become a leader in the digital finance market in Indonesia and the rest of Asia.
With the agreement, LINE Financial is set to become the second-largest shareholder in PT Bank KEB Hana. LINE is one of the most popular messaging platforms in Indonesia, and Bank KEB Hana is a foreign bank that has successfully localized for the Indonesia market.
For Bank KEB Hana, this deal is expected to produce a range of positive effects, while for LINE Financial, the deal improves the company’s positioning in Indonesia and globally as it looks to grow as a financial technology (FinTech) and digital banking provider.
Together, the two companies are also looking to create deposit, microcredit products, also remittance and payment services for Indonesia.
LINE Financial Asia CEO In Joon Hwang stated, “This agreement is an important step toward becoming a leader in mobile banking and expanding our FinTech services.”
LINE Financial will officially close the deal with Bank KEB Hana after receiving approval from Indonesia’s financial authorities, with the digital banking service expected to launch in 2019.
LINE Financial tasked with developing and investing in a range of financial services, with a focus on Southeast Asia. It was established in August 2018 and is based in Hong Kong.
The LINE messaging app launched in June 2011 and since then has grown into a diverse, global ecosystem that includes AI technology, FinTech and more.
While, Bank KEB Hana was established under the name PT Bank Pasar Pagi Madju in April 27, 1971. As the Bank changed its status and became Commercial Bank, Bank’s name was changed into PT Bank Bintang Manunggal (Bank Bima) dated Nov. 30, 1989.
In 2007, Hana Financial Group acquired Bank Bima, thus the name was changed into PT Bank Hana. Therefore, Bank Hana merged with and into PT Bank KEB Indonesia to form PT Bank KEB Hana in 2013.
In one year later, PT Bank KEB Hana was changed and officially became PT Bank KEB Hana Indonesia which has been approved by Financial Services Authority on June 27, 2014.