Bank Danamon Indonesia confirmed its controlling shareholder received an expression of interest related to shareholding in the company.
In 2013 DBS looked set to buy a controlling stake in Bank Danamon (Danamon) from Singapore's wealth fund Temasek Holdings, a major shareholder. DBS eventually backed off after Indonesia changed regulations and restricted single ownership in domestic banks to 40 percent.
The Indonesian lender is now back in play with news that MUFG, through its core unit Bank of Tokyo-Mitsubishi UFJ, in talks to purchase a 40 percent stake in Danamon for around $1.75 billion, according to a report from news agency Reuters.
Stagnant Home Market
The Tokyo based bank swelled its coffers recently when it agreed to dispose of shares in Malaysian-based universal banking group CIMB, in a deal could be worth up to $620 million.
With a rapidly ageing and decreasing domestic market, Japanese banks, financial services firms and insurers have been hunting across Asia and Australia in recent years seeking out opportunities for long term growth. The Asean region with its sizeable, young and aspirational population within easy reach of Japan has been the prime target.
