Japanese Company's Investment Boosts Danamon Bank Shares by 18 Percent

Bank Danamon Tbk (BDMN) share price closed up Rp 875 (18.04 percent) at Rp 5,725 per share on Thursday (November 9th), compared to the previous day's closing price. This price increase was triggered by news that Bank of Tokyo-Mitsubishi UFJ (BTMU) plans to purchase approximately 40 percent of Bank Danamon's shares. However, on Friday (October 10th) until 10:15 WIB, BDMN's share price reversed, falling Rp 125 (2.18 percent) to Rp 5,600 per share. Profit-taking by investors following the significant increase the previous day resulted in a correction of Bank Danamon's share price.

This move is part of the Japanese company's expansion into the Southeast Asian market. The transaction value is estimated to be around US$1.76 billion, or approximately Rp 23.7 trillion. BTMU has decided to negotiate with Danamon and its majority shareholder, Temasek Holding, an investment company owned by the Singaporean government. This acquisition is expected to be completed quickly by mid-2018.

The majority shareholder of the bank, with the trading code BDMN, is Temasek Holding through Asia Financial (Indonesia) Pte Ltd, holding 67.37 percent of the shares. Other shareholders of Bank Danamon include JPMCB-Franklin Templeton Investment Fund with 6.51 percent, and the remaining 26.1 percent is held by the public.