INDONESIA - BANKING - BI to Implement Multiple Lincense to Foreign Banks

www.theindonesiatoday.com - JAKARTA, Indonesia Today - The central bank, Bank Indonesia (BI), plans to implement multiple license to foreign banks operating in Indonesia, Bisnis Indonesia reported this morning.

Muliaman D. Hadad, BI's governor deputy, said the multiple license implementation is inline with other countries' policies that do not give equal access to Indonesian banks for expansion.

He said BI's plan to limit foreign ownership in local banks will not be implemented in the near term as BI must synchronize with the government's regulation.  (source)

INDONESIA - BANKING - DBS Told 80% Is Cap for Indonesia's Bank Danamon

www.thejakartaglobe.com - DBS Group Holdings, Southeast Asia’s largest bank, must sell shares of Bank Danamon Indonesia back to the public if it owns more than 80 percent of the lender after a takeover, according to the Indonesian bourse.

DBS offered to buy Jakarta-based Danamon for about $7.2 billion on April 2 in the biggest takeover by a Southeast Asian lender.

The bank would pay Singapore’s Temasek Holdings Rp 45.2 trillion ($4.9 billion) in new shares for its 67 percent stake and buy the remaining stock from other shareholders for Rp 21.2 trillion in cash.  (source)

INDONESIA - RATINGS - Bank Danamon Indonesia Tbk. outlook positive

www.pefindo.com - PEFINDO puts Positive Outlook to PT Bank Danamon Indonesia Tbk. (BDMN or the Bank) and to PT Adira Dinamika Multi Finance Tbk (ADMF or the Company), the automotive financing subsidiary of BDMN, due to the potential improvement in the Bank’s and the Company’s businesses and financial profiles as a result of BDMN’s shares acquired by DBS Group of Singapore. The acquisition would eventually support BDMN and ADMF in creating a stronger presence in Indonesian banking and financing industry, respectively. It is also expected to strengthen BDMN and ADMF funding franchise.  (source)

INDONESIA - BANKING - Danamon Announces Sale of Shares by FFH to DBS (press release)

www.danamon.co.id - press release - PT Bank Danamon Indonesia, Tbk, (‘Danamon’ or the “Company”) has been informed by Fullerton Financial Holdings Pte. Ltd. (“FFH”), that it has entered into a share purchase agreement with DBS Group Holdings (“DBS”) to sell its interest in the whole of the issued share capital of Asia Financial (Indonesia) Pte. Ltd. (“AFI”) to DBS. AFI holds approximately 67.37% of the total issued shares of the Company. The transaction is subject to the approvals, among others, of DBS shareholders and regulators, including Bank Indonesia.

Danamon shareholders should refer to the DBS announcement dated 2 April 2012 that DBS will launch a Mandatory Tender Offer (MTO) to acquire the remaining listed shares from the other Shareholders of Danamon for a cash offer price of IDR 7,000, - per share. (source)

INDONESIA - BANKING - House urged to intervene in DBS’s plan to acquire Danamon

www.thejakartapost.com - Golkar Party lawmaker Lili Asdjudiredja has called on the House of Representatives to urge Bank Indonesia and the government to prevent Singaporean DBS Bank from acquiring 99 percent of Bank Danamon’s shares as it would create a banking monopoly.

Both banks are owned by Temasek Holdings, the Singaporean sovereign wealth fund fully controlled by the island-city government.

“Even if the deal on Danamon’s acquisition has already been made, it must be annulled because it will affect Indonesia’s banking sector and Danamon’s domestic priority customers,” he said.  (source)

INDONESIA - CAPITAL MARKETS - Danamon Takeover Lifts Indonesia's JCI to All-Time High

www.thejakartaglobe.com - Indonesia’s benchmark stock index closed at an all-time high on Tuesday, boosted by Bank Danamon Indonesia’s shares, which resumed trading following a record buyout offer from Singapore’s DBS Group.

The Jakarta Composite Index gained 49.37 points, or 1.2 percent, to 4,215.44. That eclipsed the last record closing high, set on Aug. 1 at 4,193.44.

The stock measure’s biggest gainer was Danamon, up 39 percent at Rp 6,400, its highest close since March 23, 2011. DBS is set to acquire all of Danamon in one of Indonesia’s biggest takeover deals. Danamon was suspended from trading on Monday.  (source)

INDONESIA - BANKING - Indonesian Politicians Criticize Bank Danamon Takeover Bid

www.thejakartaglobe.com - Lawmakers from two of Indonesia’s most powerful political parties voiced opposition on Tuesday to a bid by Singapore’s DBS Group to takeover local lender Bank Danamon, and said they wanted to bar heavy foreign ownership of local banks.

But they signaled they may not be able to stop the $7.2 billion deal that would be the largest ever foreign takeover in Southeast Asia’s biggest economy, at least for now.

Local investors and bankers in Jakarta also told Reuters they would lobby against the bid by DBS, even though there seemed to be no regulatory obstacles. Several complained Indonesian banks were not given a level playing field overseas. (source)

INDONESIA - BANKING - Singapore’s DBS Group Set To Swallow Indonesia's Bank Danamon

www.thejakartaglobe.com - Singapore lending giant DBS Group is set to buy a controlling stake in Indonesia’s Bank Danamon in a record takeover deal.

DBS, Southeast Asia’s biggest banking group, will buy 67.4 percent of Danamon from Asia Financial Indonesia, a unit of Singaporean empire Temasek, for 6.2 billion Singapore dollars ($4.9 billion).

“We have a mission to be an Asian bank,” DBS chief executive Piyush Gupta said on Monday. “We already grew very well in China and India through organic growth, now we are expanding in Indonesia as the third-biggest growth country in Asia.” (source)