Indonesian conglomerate Emtek is set to acquire Bank Fama International through its subsidiary PT Elang Media Visitama. The move may be the first step for the media giant to enter the digital banking space in the country.
Emtek logo / Photo credit: Tech in Asia Indonesia
Emtek plans to buy 9 billion shares in Bank Fama Indonesia, which are currently owned by businesspeople Junus Jen Suherman, Edi Susanto, Dewi Janti, and PT Surya Putra Mandiri Sejahtera, and represent a roughly 93% stake in the bank. The rest of the shares will be bought by Emtek’s other subsidiary: PT Nusantara Berkat Agung.
The cash to execute the deal will come from Elang Media Visitama’s internal funds, with additional money coming from Emtek. The process is expected to be completed by December 28, 2021.
In December last year, Bank Fama Indonesia only had 1 trillion rupiah (around US$69.5 million) in common equity. That’s 1 trillion rupiah less than the minimum limit that the bank must own by December 2021 – a limit that was set by Indonesia’s Financial Service Authority (OJK).
Tigor Siahaan, who resigned from his position as the chief executive of Bank CIMB Niaga last month, is rumored to be the next head of Bank Fama.
Read also: Emtek’s rise as a major player in Indonesian tech
In July, Emtek announced a strategic partnership with Grab. The deal is expected to combine the strengths of the former’s services with the latter’s portfolios in media, commerce, and content production businesses.
Currency converted from Indonesian rupiah to US dollar: US$1 = 14,384 rupiah
Editing by Collin Furtado and Jaclyn Tiu
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