SSG Capital-backed Al Falah awaits OJK’s approval to acquire Bank Muamalat

Photo: Bank Muamalat

Singapore-based Al Falah Investment is awaiting approval from Indonesia’s Financial Services Authority (OJK) to acquire a 50.3 per cent stake in PT Bank Muamalat Tbk, according to the bank’s CEO Achmad Permana.

Al Falah Investment is backed by Hong Kong-based asset management firm SSG Capital Management, according to the prospectus published by Bank Muamalat in April. Al Falah Investment was founded and is partly owned by Indonesian businessman Ilham Habibie, who is the son of former president BJ Habibie.

Bank Muamalat will start the rights issue process officially once it receives OJK’s approval, Permana said. According to its prospectus, Bank Muamalat’s new shares will be traded at Indonesia Stock Exchange between July 1 and 10, with the new share allotment scheduled for July 15.

The public sector bank has received an absolute approval for the Al Falah acquisition from 92.912 per cent of shareholders, it disclosed in a stock exchange filing.

Al Falah Investment will acquire the majority stake in Bank Muamalat by acting as the standby buyer of 77.1 per cent of all new shares issued by the bank, according to the prospectus. The lender plans to raise a total of Rp 2.2 trillion ($153.48 million) through the rights issue.

Ballingal Investment Advisors analyst David Blennerhassett said that Bank Muamalat is categorized as a distressed asset and the Al Falah acquisition will enable the bank to hold onto bigger and better deals.

In its prospectus, Bank Muamalat said the acquisition by Al Falah will enable it to strengthen its capital adequacy ratio.

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.