JAKARTA. MUFG Bank Ltd and PT Adira Dinamika Multi Finance Tbk (ADMF) are still under the negotiation process for the acquisition of 80.6% of PT Mandala Multifinance Tbk (MFIN).

The entire shares are bought from PT Jayamandiri Gemasejati (JG) and other shareholders as the selling parties. Regarding this negotiation process, these three parties have reportedly signed the conditional sale and purchase agreement.

“According to this agreement, MUBK agrees to acquire approximately 70.6% of the entire shares issued by Mandala, whereas ADMF will buy 10% of the entire shares,” mentioned the management of ADMF in the information disclosure in Indonesia Stock Exchange (IDX).

For the record, this acquisition is a part of a strategy to enhance automotive financing business in Indonesia by MUFG and ADMF. Conforming to the applicable regulation in Indonesia, MUFG and ADMF will have to arrange a mandatory tender offer for MFIN’s shares.

Based on IDNFinancials data, ADMF is a financing company under PT Bank Danamon Indonesia Tbk (BDMN), with a stock ownership portion of 92.07%. Meanwhile, 92.47% of BDMN is also owned directly by MUFG Bank. (KR/ZH)