Temasek Holdings to sell 73.8% stake in Indonesia’s Bank Danamon to Japan’s MUFG

SINGAPORE – Singapore's state investment firm Temasek Holdings will sell its entire 73.8 per cent stake in Indonesia’s Bank Danamon to Japan’s Mitsubishi UFJ Financial Group (MUFG), it was announced on Tuesday (Dec 26).

MUFG will carry out the transaction in three parts, with an initial acquisition of 19.9 per cent stake in Danamon at 8,323 Indonesian rupiah per share for 15.875 trillion Indonesian rupiah (S$1.58 billion).

Temasek has been a significant shareholder in Danamon since 2003.

In a statement issued on Tuesday, Temasek's President and Head of South East Asia, Tan Chong Lee, said MUFG’s interest in Danamon is “testament to their confidence in the bank and that the combination will also be well aligned with Indonesia’s development and growth objectives”.

“Temasek will work closely with MUFG to support Danamon during this period to enhance value to Danamon's key stakeholders, including its customers and employees, and to lead the bank forward into its next phase of growth,” he said.

Mr Tan added that Temasek continues to be invested in Indonesia, across a range of sectors including consumer, real estate, as well as emerging trends in technology and financial services.

“Given the regulatory reforms and steady growth in Indonesia, Temasek remains highly optimistic about investment opportunities in the country,” he said.

Referring to a recent study with Google, Mr Tan added that Temasek estimates Southeast Asia’s internet economy will grow to US$200 billion (S$268 billion) by 2025, driven largely by the growth of online travel, e-commerce, and online media.

“This represents a significant opportunity for investors to harness emerging and growing digital trends, particularly in Indonesia given its huge population, burgeoning middle class, and rapidly developing digital ecosystem,” he said.