By acquiring Adira Dinamika Multifinance, MUFG will own approximately 70.6% of MFIN’s shares, while ADMF will possess about 10.0% of MFIN’s.
Heaptalk, Jakarta — Japan’s giant banking company Mitsubishi UFJ Financial Group (MUFG), together with PT Adira Dinamika Multifinance (ADMF), has officially acquired PT Mandala Multifinance (MFIN), with a transaction value of US$468 million (around Rp7.04 trillion).
As reported by Nikkei (06/25), this acquisition is the latest move of this giant banking company in Southeast Asia to take advantage of the growing middle class and the region’s economic growth.
This transaction is expected to be completed in early 2024 and obtain the necessary approvals from Indonesia’s Financial Services Authority (OJK) and other standard requirements in similar transactions. After these parties complete the transaction, MUFG will own approximately 70.6% of MFIN’s shares or about 2.14 billion Mandala’s stocks, while ADMF will possess about 10.0% of MFIN’s stocks, representing 265 million Mandala’s shares. Furthermore, MUFG will also conduct a mandatory tender offer under applicable regulations as the second step of this move.
In response to this acquisition move, the President Director of Mandala Multifinance, Christel Lasmana, admitted that his party is pleased to announce this transaction which is expected to provide significant benefits to all our stakeholders, including customers, employees, financing partners, and investors.
“Several MFIN shareholders signed a conditional sale and purchase agreement for the company’s shares with MUFG and ADMF on June 23rd, 2023,” affirmed Christel.
As it is known, Mandala Finance recorded revenues of around US$125 million on December 31st last year. By providing loan access with a bail of motorbikes, consumers can utilize the funds to purchase various necessities, such as furniture and home furnishings. The company also managed to decrease the non-performing loan ratio due to the outstanding performance of its team, one of which is to continue to boost its financing solutions through agents and digital applications.
“We expect this transaction will strengthen the company’s business enhancement in the future, considering that MUFG is engaged in the financial services industry. Thus, this move can create synergy to support the company’s growth,” added Christel.
Following this acquisition plan announcement, the Mandala’s shares price reportedly increased this morning (06/26). According to the data, MFIN’s stocks have been opened directly and uplifted to Rp2,500 and eventually reached the Auto Rejection Upper (ARA) level after rising 34.65%, approximately Rp2,680.
