Indonesia - Baker McKenzie Advises Japan's MUFG On The Second Stage Of Strategic Investment Int

Legal News & Analysis - Asia Pacific - Indonesia - Capital Markets

22 August, 2018


HHP Law Firm (HHP), a member firm of Baker McKenzie International, with support from Baker McKenzie Wong & Leow in Singapore and Baker McKenzie's Tokyo office, advised Japan's largest financial group, Mitsubishi UFJ Financial Group, Inc (MUFG) on its second stage of strategic investment into PT Bank Danamon Indonesia Tbk. (Bank Danamon).
 
On 3 August 2018, MUFG announced that it has completed Stage 2, the acquisition of 20.1% of the total issued shares outstanding of Bank Danamon for USD 2.8 billion from Asia Financial Indonesia and other affiliated entities, increasing its ownership in Bank Danamon to 40%.
 
The deal is completed shortly after MUFG's USD 1.2 billion acquisition of a 19.9% stake in Bank Danamon on 29 December 2017. 
 
These transactions will strengthen MUFG’s growth in Asia & Oceania and also contribute to the development of the banking sector in Indonesia. It is also expected to be the largest outbound investment for Japanese banks in history. 
 
Key dates

 

Stage 1 acquisition of 19.9% stake in Bank Danamon - Completed on 29 December 2017
Stage 2 acquisition of 20.1% stake in Bank Danamon - Completed on 3 August 2018 
 
Deal value
 

Total deal value up to Stage 2 is around USD 4 billion
 
Lead partners
 

HHP Law Firm: Erwandi Hendarta (Senior Partner)
Baker McKenzie Wong & Leow: Min-tze Lean (Principal)
Baker McKenzie's Tokyo office: Junya Ae (Partner)
 
Supporting offices & team
 

HHP Law Firm: Mahardikha Sardjana (Partner), Indah Respati (Partner), Bernadeta Tyassita (Associate) and Eddie Dewanda (Associate)
Baker McKenzie Wong & Leow: Alex Tan (Principal), David Yong (Associate) and Heidi Shum (Associate)
Baker McKenzie's Tokyo office: Michio Suzuki (Senior Associate)
 
References


Baker McKenzie's press release on MUFG's Stage 1 investment into Bank Danamon:
https://www.bakermckenzie.com/en/newsroom/2018/01/mufg-strategic-bank-acquisition-in-indonesia


MUFG’s press release on its Stage 2 investment into Bank Danamon:
http://www.bk.mufg.jp/global/newsroom/news2018/pdf/

newse0803_English.pdf


MUFG’s announcement with details of the overall transaction dated 26 Dec 2017:
http://www.bk.mufg.jp/global/newsroom/news2017/pdf/

newse12262.pdf