MUFG to Acquire Mandala Multifinance

MUFG’s consolidated subsidiary MUFG Bank and its consolidated subsidiary PT Adira Dinamika Multi Finance Tbk (“ADMF”, a finance company in Indonesia) today announced that they have agreed with PT Jayamandiri Gemasejati and certain other shareholders on the acquisition of 80.6% of the shares in PT Mandala Multifinance Tbk (“MFIN”), at a cost of approximately IDR7,042 billion, through MUFG Bank and ADMF.

The acquisition is expected to be completed by early 2024, subject to the receipt of approvals from the relevant regulatory authorities. The completion of this acquisition will result in MUFG Bank becoming the largest shareholder in MFIN by holding 70.6% of shares, while ADMF would be holding 10% of the shares. MUFG Bank anticipates conducting a mandatory tender offer, as per the applicable regulations in Indonesia, for the remaining 19.4% stake in MFIN following the completion of the acquisition of the 80.6% stake.

For MUFG, which considers Asia its second home market, Indonesia is particularly important because it boasts the largest GDP in Southeast Asia, which is expected to have a high growth rate going forward. In addition to MUFG Bank’s Jakarta Branch, one of the largest foreign banks in Indonesia, MUFG has also established a business foundation in commercial banking in the country through having made PT Bank Danamon Indonesia Tbk (“Bank Danamon”) a consolidated subsidiary in April 2019. MUFG also has a strong presence through ADMF, a subsidiary of Bank Danamon in the Indonesian auto loan market, and which is expected to grow steadily.

MFIN is an Indonesian company which mainly provides auto loans for new motorbikes and multi-purpose loans secured by motorbikes in the domestic market, with strong presence especially in eastern Indonesia. MUFG Bank and ADMF intend to leverage MFIN’s strengths, in both products and geography, to further reinforce and expand our auto loan business in Indonesia.

MUFG and MUFG Bank aim to strengthen their business in Southeast Asia through the establishment of business platforms in the region in collaboration with investee partner banks. In executing this strategy, we will continue striving to contribute to growth in Southeast Asia.

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