Acquisition Plan of Danamon’s Shares by MUFG

News / 26 December 2017

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Jakarta, 26 December 2017 - Further to its announcement on 9 November 2017, PT Bank Danamon Indonesia Tbk (“Danamon”) has been informed on 26 December 2017 by its majority shareholder Asia Financial (Indonesia) Pte. Ltd. (“AFI”), a wholly-owned subsidiary of Fullerton Financial Holdings Pte. Ltd. (“FFH”), that The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“MUFG”), the commercial banking entity of Mitsubishi UFJ Financial Group, Inc., has entered into conditional share purchase agreements with AFI and other affiliated entities who hold in aggregate 73.8% of the total issued shares of Danamon.

The investment will be executed via a three-step process.

MUFG will initially acquire 19.9% of the total issued shares of Danamon (“Step 1”), based on a price of IDR8323/share. The price for Step 1 was based on a 3Q2017 price-to-book ratio of two, with certain adjustments applied.

Subsequent to the completion of Step 1, MUFG will acquire an additional 20.1% of the total issued shares of Danamon, subject to obtaining regulatory and other relevant approvals (“Step 2”). 

Upon completion of Step 2, MUFG intends to seek the necessary approvals to increase their interest in Danamon beyond 40% of the total issued shares of Danamon (“Step 3”), and this will provide an opportunity for all other existing shareholders of Danamon to either remain as shareholders or receive cash from MUFG.

With the closing of Step 3, MUFG’s final stake in Danamon is expected to be over 73.8% of the total issued shares of Danamon.

The prices for Danamon’s shares in Step 2 and Step 3 will be based on a similar approach as Step 1. There is no certainty whether the prices for Danamon’s shares in Step 2 and Step 3 will be higher, lower or the same as the steps before it. These prices will be disclosed at the appropriate times.

AFI will still remain a significant shareholder through the course of this process, and will continue to be supportive as a shareholder. 

MUFG is one of the world’s largest financial groups and its investment in Danamon will allow Danamon to tap on the financial strength, expertise and network of MUFG to facilitate its growth. 

Please refer to the following announcements for more information on the proposed transaction.
Link: http://www.bk.mufg.jp/global/newsroom/news2017/pdf/newse12262.pdf 
Link: http://www.temasek.com.sg/mediacentre/newsreleases?detailid=27532 

As one of the largest banks in Indonesia, Danamon’s focus is on delivering long term value to all its stakeholders and shareholders. During this period, Danamon remains committed to its strategy and business operations will continue as usual. 

As the proposed transaction is subject to regulatory and shareholders’ approvals and has closing conditions customary for a transaction of this nature, all parties are advised to exercise caution when trading their shares.

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For further information, please contact:

Atria Rai
Head of Corporate Communications
Email: corporate.communications@danamon.co.id



About Danamon:
PT Bank Danamon Indonesia Tbk was founded in 1956, and as of 30 September 2017 manages IDR 174 trillion in assets along with its subsidiaries, which are PT Adira Dinamika Multi Finance Tbk. (Adira Finance) and PT Asuransi Adira Dinamika (Adira Insurance).
 
The Bank is supported by a network of more than 1,600 including conventional branches, syariah units, subsidiary outlets and more than 60,000 ATMs through partnership with ATM Bersama, PRIMA, and ALTO across 34 provinces. In addition to physical network, Danamon’s services can be accessed from Danamon Online Banking, D-Mobile and D-Card mobile application, and SMS Banking. 

Danamon is the exclusive issuer of Manchester United DEBIT/ATM and Credit Cards in Indonesia, and issuer of American Express credit cards. With a wide range of financial products such as Danamon Lebih, FlexiMax, Tabungan Bisa iB, Dana Pinter 50, KAB Bisa, and Primajaga Insurance, Danamon enables customers from various segments to meet their financial needs.

Recently, the Bank received Corporate Governance Award from the Indonesian Institute for Corporate Directorship (IICD) in the Top 50 of the Biggest Market Capitalization - Publicly Listed Companies category. Danamon also received the Indonesia Banking Award 2017 in the Best Bank in Digital Services (assets between IDR 100 – 250 trilion) category held by Tempo Media Group and Indonesia Banking School. In corporate responsibility, Yayasan Danamon Peduli received Indonesia’s Best Corporate Initiatives 2017 award for Outstanding Philanthropy from MIX Marketing and Communication Magazine.