TOKYO (dpa-AFX) - Mitsubishi UFJ Financial Group, Inc.'s commercial banking entity The Bank of Tokyo-Mitsubishi UFJ, Ltd. or 'MUFG' said that it has entered into conditional share purchase agreements with Asia Financial (Indonesia) Pte. Ltd. or 'AFI' and other affiliated entities or the 'Sellers', to acquire their shareholding interests in Indonesian bank PT Bank Danamon Indonesia, Tbk.
AFI is a wholly-owned subsidiary of Fullerton Financial Holdings Pte. Ltd. The Sellers currently hold in aggregate, 73.8% shareholding interests in Danamon.
MUFG will acquire an initial 19.9% stake in Danamon, based on a price of IDR 8323 per share or US$0.61 and at an investment amount of IDR 15.875 trillion or US$1.171 billion.
MUFG intends to then seek regulatory and other relevant approvals to acquire an additional 20.1% to increase its stake in Danamon to 40%.
MUFG intends to seek the necessary approvals to increase their stake in Danamon beyond the 40%, and this will provide an opportunity for all other existing Danamon shareholders to either remain as shareholders or receive cash from MUFG. With the closing, MUFG's final stake in Danamon is expected to be over 73.8%.
Copyright RTT News/dpa-AFX