Delisting Rumours Surface: Bank Danamon CEO and OJK Respond

PT Bank Danamon Indonesia Tbk. (BDMN) has addressed the growing rumours regarding a potential delisting from the Indonesia Stock Exchange (IDX). The rumours, which have circulated in the market, suggest that delisting is being considered as an option for Bank Danamon, as its share free float remains significantly below the minimum regulatory requirement. This comes amidst Bank Danamon’s announced exploration of integration with MUFG Indonesia.

Bank Danamon Director, Rita Mirasari, stated that the bank has no current plans to go private. She emphasised that the bank intends to comply with the minimum 15% free float requirement and is in ongoing discussions with the Financial Services Authority (OJK) to achieve this. “We will follow the regulator’s provisions. We will follow them. That is all. We will be having many discussions with the OJK,” Mirasari told CNBC Indonesia during an event at the Perbanas Institute on Tuesday.

She further clarified that the MUFG-owned bank has not considered exiting the Indonesian stock market. “We were also surprised; we are confused by these rumours,” she added, while noting that the bank continues to seek the best business opportunities.

Separately, Bank Danamon’s Chief Strategy Officer, Reza Iskantiation Sardjono, stated that the bank understands current market sentiment and new regulatory developments. He noted that the mid-tier bank is closely reviewing the new 15% free float mandate set by regulators to ensure full compliance.

Meanwhile, the Executive Head of Banking Supervision at OJK, Dian Ediana Rae, stated that no formal plan has been submitted by Bank Danamon to delist due to an inability to meet free float rules. However, he noted that delisting could be a consideration within the context of the corporate integration between Bank Danamon and MUFG Indonesia. “If that is part of a corporate action, it is merely a consideration. It is not because they cannot meet the free float, but rather because of corporate considerations, such as it being impractical,” Rae explained.

He added that the integration process between Bank Danamon and MUFG Indonesia is not yet complete and still requires OJK approval. He noted that the timeline for the integration depends on market conditions, including the capital market situation and the protection of minority shareholders and investors.