JAKARTA (TheInsiderStories) – A Switzerland insurance firm, Zurich Insurance Group, has completed the acquisition of 80 percent or 84.90 billion shares of PT Asuransi Adira Dinamika (Adira Insurance) with value of Rp3.9 trillion (US$278.57 million), said the company on Thursday (11/28). The other shares hold by the existing shareholders, PT Bank Danamon Tbk (IDX: BDMN) and Willy Suwandi Dharma.
CEO Zurich Asia Pasific Jack Howell, said that the financial company committed to implement long – term partnership with the lender and a leasing company, PT Adira Dinamika Multi Finance Tbk (IDX: ADMF), under the bank.
“Indonesia is the important market for Zurich in Asia Pacific, thus, we appreciates Adira Insurance for being the part of Zurich,” Howell said in an official statement.
While, country manager of Zurich Indonesia and president director PT Zurich Topas Life Chris Bendl conveyed the transaction is in line with company’s strategy. And Bank Danamon’ CEO Yasushi Itagaki, said Adira Insurance was the main part of Bank Danamon and he believed the new investment will strengthen the unit position in Indonesia’ market.
Going forward, he hoped the cooperation between three parties will enhance Bank Danamon’ market penetration in consumer, commercial and small-medium entreprises segment. As well as, the bank is able to reap greater fee based income.
Zurich have general and life insurance products in more than 210 countries. The company have been existed since 1872 and have headquarter in Zurich, Switzerland and registered in Swiss Exchange.
Zurich has a branch in Indonesia through Zurich Topas Life that provides life insurance services. Now, Zurich also has Adira Insurance which provides general insurance products and services, included sharia line.
While, Bank Danamon one of the medium lender in Indonesia. Recently, the lender and PT Bank Nusantara Parahyangan Tbk (IDX: BBNP), a member of Japan’ Mitsubishi UFJ Financial Group Inc. (MUFG), officially merged after completed the legal process. This merger has been effective since May 1, 2019.
With the completion, MUFG Bank Ltd., core banking under MUFG will become the controlling shareholder of the newly merged bank. Both banks will be undertaking an operational merger process over the course in the next several months. After finalizing the merger, the company appointed Itagaki to replace Sng Seow Wah as the president director of Bank Danamon.
Based on the company’ statement, MUFG 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 outlined in its announcement on Dec. 26, 2017.
Upon the completion of this acquisition, MUFG Bank will become a controlling shareholder with 40.0 percent, AFI with 33.8 percent and public 26.2 percent in shareholding interests in the bank.
Last year, MUFG Bank has entered into conditional share purchase agreements with AFI and other affiliated entities to acquire their shares in Bank Danamon. AFI is a wholly-owned subsidiary of Singapore-based Fullerton Financial Holdings Pte. Ltd.
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