MUFG To Buy Indonesia Motorcycle Loan Firm For $465 Million


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Mitsubishi UFJ Financial Group said on Monday it plans to acquire listed Indonesian motorcycle loan company Mandala Multifinance for 7 trillion rupiah ($465 million).

According to a release from MUFG, the Japanese financial giant will hold 70.6% through its subsidiary MUFG Bank and 10% through Adira Dinamika Multi Finance, a subsidiary of Bank Danamon. MUFG will conduct a mandatory tender offer for the remaining 19.4% stake of Mandala Multifinance after completion of the acquisition, which is expected by early next year. The purchase is subject to regulatory approvals.

MUFG aims to increase the products and reach of the acquired company to strengthen and expand its automotive loan business in Indonesia. Mandala Multifinance, which listed on the Indonesia Stock Exchange in 2005, provides loans for motorcycles and multi-purpose loans secured by motorcycles.

At the end of last year, it had 274 branches and a significant presence in the eastern part of Indonesia. The company reported a 22.5% increase in revenue to 2.21 trillion rupiah last year.

The MUFG release said Indonesia is “particularly important” to the bank as the largest economy in Southeast Asia. Last year, MUFG invested in several digital financial startups in the region, including an 87 billion yen ($620 million) investment in Home Credit for its operations in the Philippines and Indonesia. It also invested 26 billion yen in Akulaku, an Indonesian payment service.

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Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

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