1. Startups

Grab and Singtel Join as Strategic Investors of Bank Fama

Grab and Singtel acquired a 16,26% stake in Bank Fama

PT Elang Mahkota Teknologi Tbk (IDX: EMTK) through PT Elang Media Visitama announced the joining Grab and Singtel as a strategic investor PT Bank Fama International (FAMA). Well Grab and Singtel acquired a 16,26% stake in Bank Fama.

Based on the information disclosure on the Indonesia Stock Exchange (IDX), Grab Holdings Limited (Grab) and Singtel Telecommunications Limited through Singtel Alpha Investments Pte. Ltd. conduct equity participation through the issuance of new shares in Bank Fama.

Both agreed to acquire 2,35 billion new shares in Bank Fama, equivalent to 16,26% of the issued and paid-up capital of Bank FAMA which had been increased.

After the issuance of new shares to Grab and Singtel, the composition of EMV's shareholding in Bank Fama became 62,76%, PT Nusantara Berkat Agung became 4,72%, and Grab and Singtel each own 16,26%.

"This strategic investor is in the context of accelerating and developing Bank Fama's business and digital ecosystem," said a statement in the IDX's information disclosure.

Meanwhile, the share participation agreement Grab and Singtel as stated in the Deed of Statement of Shareholders' Resolution of PT Bank Fama International Number 2 on 5 January 2022.

Previously, EMTEK had acquired 9 billion shares of Bank Fama or representing 93% of the total issued and paid-up capital. This corporate action was completed in December 2021. 

For information, Bank Fama is headquartered in Bandung and was established in 1993 as a commercial bank with an initial paid-up capital of Rp10 billion. Bank Fama has several online office networks in Bandung, Jakarta, and Tangerang with a market focus on the retail segment, especially SMEs. As of December 2020, Bank Fama has a core core capital of Rp1,001 trillion.

Involvement Grab in digital banking

It's quite interesting if you take a glance at engagement Grab as a strategic investor in Emtek's digital bank. When traced the traces of their journey, Grab is not a new name for this media conglomerate company.

Just last year, Emtek injected PT Grab Indonesian Technology or Grab Indonesia worth IDR 5,44 trillion as a sign of deeper synergy. As of June 2021, Emtek was recorded to have pocketed a 5,88% stake in Grab Indonesia.

Then, recently Grab and Bukalapak are also involved in the absorption rights issue di Hello Bank, which incidentally is a digital bank owned by conglomerate Chairul Tanjung alias CT. Bukalapak now owns 11,49% stake in Allo Bank.

As is known, PT Bukalapak.com Tbk (IDX: BUKA) is an associated entity through PT Kreatif Media Karya (KMK), which is a subsidiary of Emtek in the media and digital sector. As of March 31, 2021, Emtek through KMK has held a 34,88% stake in Bukalapak.

Affiliation between Emtek, Grab, and Bukalapak seem to show a strong thread to jointly expand the scope of the product ecosystem, especially in financial services, through digital banking vehicles in Indonesia.

More Coverage:

Join Grab also reinforces previous news about efforts to integrate the broader digital ecosystem of commerce, online-to-offline (O2O), and digital payments at Bank Fama. In Grab alone, great app It has a complete service ecosystem that can be integrated with Bank Fama's digital financial services,

Likewise, Bukalapak enters through Allo Bank, which may use a different approach. Bukalapak is known to be focusing on boosting the reach of the Buka Mitra business line to MSME players in the regions. Buka Mitra is the driving force behind Bukalapak's performance growth. His involvement in Allo Bank can enable the company to penetrate more business actors.

However, it is not impossible, there is the potential for greater synergy between Bank Fama and Allo Bank.

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