Danamon wraps up Adira takeover

Danamon wraps up Adira takeover

The Jakarta Post, Jakarta

Bank Danamon, the country's fifth largest bank in terms of
assets, said it had completed the acquisition of a controlling
stake in financing company PT Adira Dinamika Multifinance for Rp
850 billion (US$99 million).

"Danamon has concluded the purchase agreement on Wednesday to
buy 75 percent of Adira stakes worth Rp 850 billion," said
Danamon vice president Emirsyah Satar during a ceremony on
Thursday.

Emirsyah said the completion of the transaction would help
support Danamon's 20 percent profit growth target for this year.

The acquisition would also help Adira in boosting its lending
portfolio to Rp 5 trillion this year from Rp 3.7 trillion last
year, as Danamon planned to provide the company with financial
back up and an operating network, said Emirsyah.

Danamon, which is 61.88 percent owned by a consortium of
Temasek Holdings Pte. Ltd. and Deutsche Bank, earlier said that
the plan to acquire Adira was driven by the fact that the
country's financing sector had grown rapidly in the past few
years.

With the completion of the acquisition, Adira's current
controller Theodore Permadi Rachmat and Stanley Setia Atmadja
will hold the remaining 13.5 percent and 1.5 percent,
respectively in Adira.

Rahmat is a former president of publicly listed automotive
company PT Astra International, while Stanley is a businessman.