Hong Kong-based investment firm Wealth Track Technology (WTT) and IT service provider Metamorfosis Ekosistem Indonesia (MEI) have completed the acquisition of 51 per cent stake in Bandung-based small lender Bank Artos for a total 242 billion rupiah ($17 million).
In a filing to the Indonesia Stock Exchange (IDX) last week, WTT, affiliated to the founder of private equity firm Northstar Group and early Gojek backer Patrick Sugito Walujo, has acquired 161.03 million shares or 13.35 per cent stake in Bank Artos for 63.6 billion rupiah ($4.5 million).
Meanwhile, MEI bought 454.15 million shares [37.65%] at 395 rupiah apiece in the lender for 179.39 billion rupiah ($12.9 million). MEI is founded by Jerry Ng, former CEO of Bank Tabungan Pensiunan Negara (BTPN).
In a filing to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore, Ng’s name [likely the same person as above] appears in a prospectus as one of the owners of the Dkatalis Private Limited, which describes itself as the ‘technology platform for financial services’. And, ride-hailing unicorn Gojek is learnt to be spinning out its financial arm, Go-Finance, into an independent entity called Digital Katalis, or Dkatalis, DealStreetAsia reported it last month.
Per the ACRA filing, Dkatalis’s other shareholders are Singapore-founded fintech firm Neuroncredit, private investment firm Freemantle Capital, Jetway Wealth Management Limited, investment fund Prometheus Investing Limited, and Aeroville United Inc.
Both Bank Artos and Gojek have previously denied the affiliation. In the past several months, there is rising speculation that Bank Artos would be transformed into Gojek Bank, which works exclusively as the ride-hailing app’s banking arm.
Following the completion of the acquisition, the lender aims to transform its core business of providing commercial banking services for SMEs to become a digital bank. Analysts said more and more lenders are starting to diversify to target millennial customers. They also aim to revamp their businesses to offer digital services.
Aside from Bank Artos, Indonesia’s largest private lender by assets BCA also recently completed the acquisition of smaller lender Bank Royal Indonesia. Bank Royal will focus on the digital segment, especially for loan disbursement.
Source: Deal Street Asia | 2 January 2020
Patrick Walujo & Jerry Ng-backed entities close acquisition of Bank Artos