SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Date: December 27, 2017
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Mitsubishi UFJ Financial Group, Inc.
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By:
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/s/ Zenta Morokawa
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Name:
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Zenta Morokawa
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Title:
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Chief Manager, Documentation &
Corporate Secretary Department,
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Corporate Administration Division
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Mitsubishi UFJ Financial Group, Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Japans largest financial group MUFG to make a strategic investment in
Indonesias Bank Danamon
***
MUFG seeks to take
a 73.8% majority stake in Bank Danamon,
reaffirming Indonesias importance in its regional strategy
Japan, 26 December 2017
Mitsubishi UFJ Financial Group, Inc.s commercial banking entity The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(MUFG) announced today that it has entered into conditional share purchase agreements with Asia Financial (Indonesia) Pte. Ltd. (AFI) and other affiliated entities (the Sellers), to acquire their shareholding
interests in Indonesian bank PT Bank Danamon Indonesia, Tbk. (Danamon), subject to applicable regulatory approvals. AFI is a wholly-owned subsidiary of Fullerton Financial Holdings Pte. Ltd. The Sellers currently hold in aggregate, 73.8%
shareholding interests in Danamon.
This strategic investment by MUFG will be executed through three steps (the Proposed Transaction), and
completion of the Proposed Transaction will result in MUFG becoming the largest shareholder in Danamon. It will also bolster MUFGs growth strategy in Asia & Oceania and contribute to the overall development of the Indonesian banking
sector.
Outline of Proposed Transaction
[1]
:
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Step 1: MUFG will acquire an initial 19.9% stake in Danamon, based on a price
[2]
of IDR 8323 per share (US$0.61) and at an investment amount of IDR 15.875 trillion
(US$ 1,171 million). The price was based on a 3Q17 P/B of 2.0x with certain adjustments applied. AFI will continue to be the majority shareholder in Danamon upon closing of Step 1, which is expected to be within a few days.
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Step 2
[2], [3]
: MUFG intends to then seek regulatory and other relevant approvals to acquire an additional 20.1% to increase its stake in Danamon to 40% (Step
2). This step is expected to close between Q2 Q3 of 2018, subject to receiving these approvals.
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Step 3
[2], [3]
: Upon completion of Step 2, MUFG intends to seek the necessary approvals to increase their stake in Danamon beyond the 40%, and this will provide an
opportunity for all other existing Danamon shareholders to either remain as shareholders or receive cash from MUFG
[4]
. With the closing of Step 3, MUFGs final stake in Danamon is expected to
be over 73.8%.
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Strategic Rationale
MUFGs investment in Danamon represents another crucial milestone for its strategic plans in Asia & Oceania. The bank has greatly expanded its
presence, diversified its business mix in the region and strengthened its commercial banking business through similar strategic partnerships with prominent banks across the region
[5]
. In
Indonesia, MUFG has been operating for 50 years and currently has a full services branch in Jakarta, one
sub-branch
in Surabaya, and nine service points across the country.
Indonesia is the largest economy in ASEAN underpinned by excellent growth fundamentals including favourable demographics, a rich resource base and stable
political climate. MUFGs investment in Danamon is a strong testament to the banks optimism in the countrys long-term prospects and commitment to the ongoing development of the Indonesian banking sector. MUFG expects that this
investment into the country will positively contribute to the growth of the Indonesian banking sector and economy as a whole. MUFG will establish an integrated and comprehensive services platform that serves as a gateway for clients wishing to make
inroads into Indonesias burgeoning economy as well as local companies keen on expanding into the region. This investment will also strategically allow MUFG to benefit from Danamons foothold in the developing local retail and small and
medium enterprises (SME) segments to deepen its banking franchise in Indonesia.
Mr. Takayoshi Futae, MUFGs CEO for Asia & Oceania
region said: As one of the leading banks in Asia & Oceania, we have long recognised Indonesias role as one of the key drivers of the regions development and have sought to establish a stronger presence in the
country.
Mr. Futae added: Danamon is a well-respected institution in the local banking sector, renowned for its experienced and capable
management team, sound business platform and profitable franchise, and would make a very welcome and strategic addition to the MUFG group as we press on with our regional strategy. We are supportive of the leadership of Danamons management,
and are confident that our future collaboration will create synergies that would allow us to better serve customers and shareholders and enhance our mutual growth.
As Japan and Indonesia celebrate 60 years of diplomatic relations in 2018, this partnership is also a fitting and timely reminder of the deep ties that
exist between both countries, and we will leverage this alliance to further intermediate business flows between these two great nations and contribute to ASEANs economy.
For Danamon, currently the fifth most profitable Indonesian commercial bank by earnings, the investment by MUFG will allow it to tap on MUFGs financial
strength, relationships with Japans top corporates, global network as well as product and sectorial expertise to enhance its growth ambitions. As a supportive and long-term shareholder, MUFG will harness Danamons established and
respected brand franchise to foster greater synergies and enhance Danamons position as a leading and prominent Indonesian bank, one that remains committed to delivering high quality services to its customers.
We are confident that MUFG coming in as a shareholder of Danamon is beneficial to the companys stakeholders, including its employees, clients and
customers, as well as business partners. With deep banking expertise and international experience, we believe MUFG is the right partner for Danamon as they embark on their next phase of growth. Since 2003, we have been a shareholder in Danamon and
will continue to be supportive of them. We remain invested in the company and look forward to working closely with MUFG during this period. Indonesia is a dynamic market and we continue to be optimistic about its growth and long term potential, as
well as that of its financial services sector, said Mr. Tow Heng Tan, Director, Fullerton Financial Holdings.
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Notes:
[1]
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The Proposed Transaction is subject to regulatory and shareholders approvals and has closing conditions customary for a transaction of this nature. Shareholders are advised to exercise caution when trading
their shares.
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[2]
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The prices for Danamons shares in Steps 2 and 3 will be based on a similar approach as Step 1. There is no certainty as to whether the price at each step
will be higher, lower or the same as the steps preceding it. The Step 2 and Step 3 prices will be disclosed at the appropriate time.
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[3]
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For the avoidance of doubt, in accordance with Indonesian regulations, there will not be a mandatory tender offer in Step 2 and Step 3.
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[4]
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Further details will be shared in due course, at an appropriate time.
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[5]
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MUFG has invested in a 77% stake in Bank of Ayudhya Public Company Limited (Krungsri) in Thailand, 20% in VietinBank in Vietnam and 20% in Security Bank Corporation in the Philippines.
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Cautionary Statement Regarding MUFGs Forward-Looking Statements
This communication contains forward-looking statements. We use words such as expects, intends, and similar expressions to identify forward-looking
statements. Actual results could differ materially from those projected or forecast in the forward-looking statements. MUFG assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are
cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
-END-
About MUFG
Mitsubishi UFJ Financial Group, Inc.
is one of the worlds leading financial groups, with total assets of approximately US$2.7 trillion as of 30 September 2017. Headquartered in Tokyo and with approximately 350 years of history, the Group has a global network with over 2,300
offices across more than 50 countries. It has about 150,000 employees and close to 300 entities, offering services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.
The Groups operating companies include Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation (Japans leading trust bank), and
Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japans largest securities firms.
The Bank of Tokyo-Mitsubishi UFJ, Ltd. is Japans
premier bank, with a global network spanning around 50 countries. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide.
Through close partnerships among our operating companies, Mitsubishi UFJ Financial Group, Inc. aims to be the worlds most trusted financial
group, flexibly responding to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. The Groups shares trade on the Tokyo, Nagoya and New York (NYSE: MTU) stock
exchanges.
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About FFH
Fullerton Financial Holdings (FFH) is a strategic and operating investor in financial and related services in Emerging Markets. FFH seeks to create shareholder
value by being committed to building differentiated business models focused on the Mass Market and SME segments, and an enabler of digital innovation for our portfolio companies. FFH is a wholly owned portfolio company of Temasek Holdings (Private)
Limited, an investment company headquartered in Singapore. As at 31 December 2016, FFHs total assets stood at S$28.5 billion, and its portfolio includes investments in 10 financial institutions located in nine countries. For more
information, please visit the website www.fullertonfinancial.com.
For media enquiries, please contact:
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For MUFG
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For FFH
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Jenny Lim
Head, Corporate Communications,
Asia & Oceania
Bank of Tokyo-Mitsubishi UFJ, Ltd
DID: +65 6918-3842
Mobile: +65 8139 9632
Email: jenny_lim@sg.mufg.jp
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Press contacts
Fullerton Financial Holdings
enquiries@fullertonfinancial.com.
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Karl Ho
Corporate Communications,
Asia & Oceania
Bank of Tokyo-Mitsubishi UFJ, Ltd
DID: +65 6918 3841
Mobile: +65 9386 4956
Email: karl_ho@sg.mufg.jp
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