Bank Mandiri, AXA to acquire ADB

The Jakarta Post, Jakarta | Tue, 04/05/2011

The country's largest lender by assets, Bank Mandiri, announced Tuesday its plan to acquire local insurance firm PT Asuransi Dharma Bangsa, as part of its partnership with French-based insurance company AXA S. A.

“After going through selection and negotiation processes with a number of global insurance firms, we have selected AXA S. A. as one of Bank Mandiri's strategic partners in developing our business,” the bank said in a press statement Tuesday.

“To realize [the partnership], Bank Mandiri is planning to acquire PT Asuransi Dharma Bangsa 'ADB'”,” it added as quoted by tempointeraktif.com.

The acquisition will be undertaken, the bank further explained, by purchasing 120,000 of 126,718 new shares ADB is planning to soon issue.

AXA, meanwhile, will buy the remaining 6,718 new shares, while taking over 73,292 ADB shares currently owned by Bank Mandiri Pension Foundation and PT Estika Yasakelola.

After the transaction completes, Bank Mandiri is set to own 60 percent of ADB's shares, while AXA the remaining 40 percent.

ADB's financial reports said its total assets stood at Rp 61.9 billion (approximately US$7.1 million) in 2010, a 40.5 percent increase from the year before; while its gross premium revenues reached Rp 28 billion, a 21 percent increase from 2009.