EMTEK Media Conglomerate Group Acquires 93% Shares of Bank Fama

The news puzzle of the establishment of a digital bank by EMTEK and Grab started appearing one by one. Media and technology conglomerate company PT Elang Mahkota Teknologi (IDX: EMTK) will acquire PT Bank Fama International. Through its subsidiary PT Elang Media Visitama (EMV), EMTEK will take over 93% or the equivalent of 9.089.503.800 shares owned by Bank Fama.

The plan is presented in acquisition prospectus published by Bank Fama in newspapers. Bank Fama is looking for new investors to meet the minimum core capital requirement of IDR 2 trillion by the end of 2021 as stipulated in POJK No. 12.

In his statement, this corporate action became the entry point for the tycoon owned by Sariaatmadja to increase financial and banking literacy in the MSME sector. In addition, Bank Fama can also take advantage of EMV's financial strength, business network, products, and sectoral expertise.

"EMV also plans to maintain the current Bank Fama management team. EMV plans to support and increase employee development activities to build employee skills and abilities to support Bank Fama's main activities," said Bank Fama's management statement.

To complete the acquisition process, Bank Fama will hold an EGMS on September 5, 2021, while the EMV will be on December 6, 2021. The submission of a takeover application to OJK will be made on December 8. He estimates that the acquisition will be completed on December 28 after receiving the approval of the OJK and the Ministry of Law and Human Rights.

A little 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. Currently, Bank Fama has a core core capital of Rp1,001 trillion as of December 2020.

Former CIMB Niaga executive leads Bank Fama

Before this news was released, it was reported that EMTEK would set up a digital bank with the super app platform Grab. Following this, it was announced that Tigor M Siahaan had officially resigned from his position as President Director and CEO of PT Bank CIMB Niaga Tbk.

According to the news Dataword, Tigor will lead the joint venture digital bank (j) EMTEK and Grab the. This bank is rumored to be integrated with various digital ecosystems, starting from commerce, online-to-offline (O2O), and digital payments.

The increasing number of banks transitioning to digital and their collaboration with digital platforms will further strengthen their prospects and competitive landscape for next year. Moreover, the Financial Services Authority (OJK) has released new rules that provide clear limits regarding the establishment of banks.

Based on our records, Bank Jago synergizes with Gojek, Neo Commerce Bank with Akulaku, BCA Digital with Blibli, to Seabank by Sea Group. This number is projected to increase along with increasing digital acceleration in Indonesia.

Highlighting this, the Indonesia Stock Exchange Business Development Advisor Poltak Hotradero had revealed that the financial sector is very large in Indonesia. Therefore, the role should not be given to the banking sector alone. In addition to the large business potential, he believes that there are still market segments that have not been properly exploited in Indonesia and can only be served through digital channels.

"Digital platforms will facilitate synergies with other digital financial services, such as investment and insurance services. However, it should be noted that the biggest cost and risk of the digital transition is failure to maintain market share and segments. These factors can make banks irrelevant," he added.