JAKARTA (TheInsiderStories) – The Korean Development Bank (KDB) took over the majority stocks of Indonesian leasing firm, PT Tifa Finance Tbk (IDX: TIFA), it said on Tuesday (07/07). The state-owned bank from South Korea will acquire 870,763,100 shares or 80.65 percent of the total issued and paid-up capital of the company.
Based on official data, the shareholders composition are PT Dwi Satrya Utama, Singapore’ Tan Chong Credit Pte Ltd., and public. The management stated, the takeover plan would be carried out in accordance with the applicable laws and regulations.
Tifa Finance has not revealed the acquisition values of these shares sale. However, referring to the last trading price yesterday, the issuer’ shares perched at Rp244 (US$0.017) per share. Based on this reference, the acquisition value is estimated to reach Rp212 billion.
Since last year, KDB has announced its intention to acquire the lessor. The bank have seen an opportunity to diversify their portfolio in the Southeast Asian region by targeting licensed financial companies.
This is also part of KDB‘ efforts to look beyond the highly competitive Korean financial market where commercial banks and policy banks face difficulties in generating positive cash flow amid low interest rates.
At present, KDB has operated in Indonesia through a securities company, PT eTrading Securities and has changed its name to PT KDB Daewoo Securities. Then, another South Korean securities company, Mirae Asset Securities finally bought Daewoo Securities from KDB for 2.39 trillion Won ($2.00 billion) and later changed its name to PT Mirae Asset Sekuritas Indonesia.
KDB is a state-owned bank in South Korea established since 1954. Apart from its offices in Hong Kong, KDB operates offices in Bangkok, Ho Chi Minh City, Yangon and Manila. It established an office in Indonesia in February, 2019.
Founded in 1989, Tifa Finance is located in Jakarta and offers a variety of financial services, including leasing and consumer financing.
Based on data from the company, its assets were recorded at Rp1.19 trillion as of March 31, 2020. In the same period, net profit was Rp6.67 billion, down from the year then worth Rp8.03 billion.
US$1: Won 1,193.69, Rp14,300
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