Japan-based financial services company, J Trust Group, is all set to acquire PT Bank Mutiara in Indonesia, as part of its objective to exploit the growing demand for retail finance in the country.
J Trust has been selected as the final bidder in the auction of Bank Mutiara, which was earlier known as Bank Century.
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The transaction is conditional upon the successful completion of certain regulatory procedures, including approval from Indonesia’s Financial Services Authority, that would enable the company to officially become Mutiara’s controlling shareholder.
J Trust said in a statement: "LPS informed the company that the company has been selected as the successful bidder, and today signed a conditional share sale and purchase agreement with the company governing the Transaction".
A person familiar with the development was quoted by Reuters as saying that the divesture of Bank Mutiara could fetch nearly $300m; however, it would be lower than the estimated $564.45m pumped to bail out the bank.
During the financial crisis of 2008, the Indonesian Government bailed out Bank Mutiara, which has been managed by the Indonesian Deposit Insurance Corporation Lembaga Penjamin Simpanan.
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By GlobalDataBank Mutiara manages a network of 62 branch offices across Indonesia and a total asset value of approximately $1.10bn.
