‘MUFG EYEING 40PC STAKE IN DANAMON’
Lender to buy shares from Temasek for 200b yen, says source
THE core unit of Mitsubishi UFJ Financial Group (MUFG) is looking to buy a 40 per cent stake in Bank Danamon Indonesia for around 200 billion yen (RM7.33 billion), said a source yesterday.
Bank of Tokyo-Mitsubishi UFJ (BTMU) intended to buy Danamon shares from Singapore state investor Temasek Holdings, a major shareholder, said two sources.
Faced with sluggish growth at home, MUFG has expanded its presence in Southeast Asia in recent years, and already holds stakes in Vietnam’s Vientinbank, Thailand’s Bank of Ayudhya and Security Bank Corp of the Philippines.
MUFG planned to invest in Indonesia’s fifth-largest bank in the financial year starting April next year, and was aiming to reach a basic agreement this year, said the first source.
But according to the second source, talks were in early stages and it was not certain if the deal would be confirmed.
“The company is strategically considering various investment opportunities in Indonesia,” said an MUFG representative, adding that domestic media reports on plans for a Danamon stake were not based on any announcement made by the company.
An official at the Indonesian Financial Services Authority said there had not been “any submission from MUFG to own or enter Bank Danamon”.
Danamon lends primarily to the retail and corporate sectors and is a major private player in microfinance. Reuters