PT Minna Padi Investama Sekuritas, an Indonesian financial services company, will buy a majority stake in the nation’s oldest Shariah-compliant bank by participating in the lender’s rights issue.
Minna Padi will acquire at least 51% in PT Bank Muamalat Indonesia for 4.5 trillion rupiah (RM1.41 billion) by becoming a standby buyer in the rights issue, the lender said in a stock exchange filing yesterday.
That would dilute the stake of existing shareholders such as the Islamic Development Bank, which owns a 33% holding, Kuwait’s Boubyan Bank KSCP and National Bank of Kuwait SAKP. The Kuwait lenders hold 22% and 8.45% respectively, data on Bank Muamalat’s website show.
Indonesia is home to the world’s largest Muslim population numbering more than 200 million, but its Islamic lenders account for less than 4% of the total banking assets.
Bank Muamalat has lagged its peers with its assets increasing only 9.8% in the 12 months through July, short of the 24% expansion seen for the industry, according to data from the country’s Financial Services Authority.
The lender, which began operations in 1991, has a 21% share of the domestic Shariah market, authority data show.
Bank Muamalat’s total assets stood at 57.7 trillion rupiah at the end of July and the lender had 363 branches and 1,337 ATMs, according to the company’s website.
Minna Padi is a holding company that holds brokerage, underwriting and asset management licences. Its shares surged 8.2% to a record 1,520 rupiah at the close in Jakarta yesterday, extending gains this year to 219%.