Dubai Islamic Bank raises stake to 40% in Indonesia’s Bank Panin Syariah  

Management of Bank Panin Syariah. Visual from the company.

By Vincencia NLS

October 6, 2015

Dubai Islamic Bank PJSC (DIB) has received formal approval from the Financial Services Authority, Indonesia (OJK) to increase its shareholding in PT Bank Panin Syariah, a listed syariah commercial bank, to 40 per cent, the company said in a press statement.

The move forms part of DIB’s overall investment strategy in Indonesia.

In the first phase, DIB had completed the acquisition of around 25 per cent stake in Bank Panin Syariah, procuring the entity’s shares from the market, and not through a direct share purchase from Panin Bank as earlier reported in certain sections of the press.

Following the completion of the first phase, DIB initiated a formal regulatory approval process to obtain “Controlling Shareholder Status” from the Financial Services Authority.

Also Read : Indonesia Dealbook: Emirates NBD, Qatar Masraf al Rayan, Dubai Islamic Bank eye Islamic banks; Cargill plans to invest $750m

After the OJK approval, DIB is now in a position to initiate and complete phase two of the share purchase plan to increase its shareholding to 40 per cent.

“Islamic banking in Indonesia has huge potential which still remains largely unexploited”, said Adnan Chilwan, Group CEO, DIB. “Given Bank Panin Syariah’s knowledge of the local market and DIB’s undisputed expertise in this fast growing segment, we see a massive opportunity for growth and expansion transforming what today is seen as a niche business into a more widely accepted form of banking within the country”.

Bank Panin Syariah is currently controlled by PT Bank Panin Tbk and operates through a network of 12 branches. The bank is listed on the Indonesia Stock Exchange (IDX).

DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices and is the largest Islamic bank in the UAE.

DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. The bank operates 90 branches in the United Arab Emirate.

Also Read : China Construction Bank may take controlling stake in Indonesia’s Bank Windu

DIB has been proactive in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 175 branches across 56 major cities in Pakistan. DIB has also started operations in Jordan with the establishment of Jordan Dubai Islamic Bank.

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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).

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

  • 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. 
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