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Mandiri will acquire financial service companies

08 January 2019 06:57 AM  Company: PT. Bank Mandiri (Persero) Tbk[BMRI]
Rp. 7,600  -150 (-1.94%)

JAKARTA. After having a capital adequacy ratio (CAR) that exceeds its needs, PT Bank Mandiri (Persero) Tbk will use the excess capital for expansion purposes. The fund will be used to acquire several companies in the financial sector.

President Director of Bank Mandiri, Kartika Wirjoatmodjo, said that currently, Bank Mandiri's CAR position reaches 21%. According to company calculations, Bank Mandiri only need a CAR of 16.5% -17% to support its expansion needs.

It means that there are around 4% or equivalent to Rp. 30 trillion - Rp. 35 trillion in unused company capital. According to her, the funds will be used for corporate action purposes.

One of them is to acquire companies in the financial sector. However, she did not specify the company that will be targeted. In addition, she also didn't explain when the acquisition plan will be carried out.

"We always look for potential acquisition at the market, both in banks and multi-finance companies. But there is no specific company target for us to announce," she said in Jakarta, Monday (7/1).

However, Kartika ensured that her party was trying to find a company that could be targeted to become a subsidiary in the field of financial services, which would complement Bank Mandiri's business. "The business must not be the same as the segments and products of Bank Mandiri, as our complimentary business," she explained. (AM/AR)

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PT. Bank Mandiri (Persero) Tbk [BMRI]   Rp. 7,600   -150 (-1.94%)