Indonesia Digest: Logistics firm Inprase’s IPO; OJK okays MUFG-Danamon deal

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Logistics firm Indah Prakasa Sentosa has announced that it is targeting to raise $3 million from its IPO while the country’s Financial Services Authority (OJK) said it would give the go-ahead to Japan’s Mitsubishi UFJ Financial Group to acquire a majority stake in Bank Danamon Indonesia with some riders.

Logistics firm Inprase targets $3m from IPO

Trading, transport and logistics firm Indah Prakasa Sentosa (Inprase) will be looking to raise $3 million through an initial public offering (IPO) on the Indonesian Stock Exchange (IDX).

In a statement published at the Indonesian Central Securities Depository (KSEI), Inprase said, it will offer up to 250 million new shares priced at Rp 276 apiece. The listing date is slated for April 6.

It was previously reported that the company will use around 44% fund from the IPO to acquire the shares of Jono Gas Pejagalan, a company owned by an affiliate firm in the LPG industry. The remaining 56% will be used for additional capital expenditure.

Meanwhile, another logistic firm Trimuda Nuansa Citra has also recently announced that it is planning to file for IPO soon and targets to be listed by June.

OJK allows Japanese firm MUFG’s acquisition of Bank Danamon

Indonesia’s Financial Services Authority (OJK) has said it would allow Japan’s Mitsubishi UFJ Financial Group to acquire a majority stake in local lender Bank Danamon Indonesia if the foreign investor agrees to merge the bank with another local lender already under its ownership.

A 2016 OJK regulation generally limits foreign ownership of Indonesian banks to 40 per cent. However, one of the exceptions to this is if the investor plans to acquire two or more banks to merge them together. The exception was made as part of the authority’s efforts to try and trim the number of local banks that currently exceed 110.

Mitsubishi UFJ Financial Group, which is looking to acquire a 73.8 per cent stake in Bank Danamon through its subsidiary The Bank of Tokyo Mitsubishi, already owns small local lender Bank Nusantara Parahyangan.

Speaking to local reporters recently, OJK’s banking supervisory division head, Heru Kristiyana said the agency will approve the acquisition plan if the Japanese company agrees to merge the two lenders into a single entity.

Other foreign banks from the region that have disclosed interest in acquiring Indonesian banks include Japan’s Sumitomo Mitsui Financial Group (SMFG) and Industrial Bank of Korea.

Also Read:

Exclusive: Indonesia’s logistics startup Etobee raises $3.5m bridge funding

Indonesia Digest: Kalbe to invest $51m in new plant; Artajasa eyes $3.2m via IPO

Indonesia’s Bank Danamon fields interest from suitors for insurance unit

Singapore Reporter/s

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

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  • 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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Singapore Reporter/s

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. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.