TOKYO (Reuters) - The core unit of Mitsubishi UFJ Financial Group (MUFG) (8306.T) is looking at buying a 40 percent stake in Bank Danamon Indonesia (BDMN.JK) for around 200 billion yen ($1.8 billion), a person with direct knowledge of the matter said.
Bank of Tokyo-Mitsubishi UFJ (MUFG) intends to buy the shares from Singapore state investor Temasek Holdings, a major shareholder in Bank Danamon, two people with direct knowledge said.
Shares in Bank Danamon surged 11 percent in early trade on Thursday.
MUFG plans to reach a basic agreement this year and hopes to make the purchase in the next financial year that starts in April, one of the people said. The person added that the Japanese megabank would like to a majority stake in the future if it can win approval from the Indonesian government.
The people declined to be identified because MUFG’s deliberations on the matter were not public. A MUFG representative declined to comment.
Temasek did not immediately respond to an email requesting comment.
Reporting by Taro Fuse and Anshuman Daga; Writing by Minami Funakoshi; Editing by Edwina Gibbs