Taiwan’s Cathay Financial may up stake in Indonesia’s Bank Mayapada to 51%

Taiwan’s Cathay Financial Holdings is conducting due diligence to raise its stake to 51% in mid-sized Indonesia lender Bank Mayapada Internasional, an Indonesia regulatory official said on Monday.

Cathay, through its arm Cathay Life Insurance, at the end of 2019 held the biggest stake in the bank at 37.33%, while PT Mayapada Karunia, a unit of Indonesian conglomerate Mayapada Group, was the second biggest stakeholder with 26.42%.

Slamet Edy Purnomo, a deputy commissioner for banking surveillance at the Financial Services Authority (OJK), said Cathay is expected to complete due diligence next week.

“OJK is supportive because Cathay Financial Holdings is the largest financial institution in Taiwan,” Purnomo said in a text message, adding the move could aid the bank’s development and Indonesia’s economy.

Cathay Financial declined to comment on the issue.

“Cathay has been my partner … At times like this, partners have to strengthen the capital but we don’t know how much capital will be injected yet,” Dato Sri Tahir, the founder of Mayapada Group, told Reuters by telephone.

Bank Mayapada reported a 79.2 billion rupiah ($5.52 million) net profit in the first quarter, 44.5% down on the same period a year earlier.

Its non-performing loan ratio was at 6.94% at the end of March, compared with a 2.77% industry average and OJK’s threshold of 5%.

Media reported Tahir has injected capital into the lender several times this year to help maintain its capital adequacy ratio, which was at 13.75% at the end March, lower than 14.59% at the same time a year earlier.

Earlier this year, OJK said it has also approved South Korean lender KB Kookmin Bank increasing its ownership in another mid-sized Indonesian lender Bank Bukopin, which has been facing liquidity problems.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.