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.