(July 9): Investors led by tycoon Jerry Ng are considering options for their holdings in PT BFI Finance Indonesia and digital lender PT Bank Jago, according to people familiar with the matter.
Goldman Sachs Group Inc is working with them on a strategic review, the people said, asking not to be identified because the process is private. Options include a merger of the two companies, the people said, a move that would create an entity with a market value of about 25 trillion rupiah (US$1.4 billion or $1.8 billion).
Foreign lenders seeking to expand in Indonesia may be interested in BFI Finance and Bank Jago, the people said, without elaborating. Deliberations are ongoing, they added.
Bank Jago said it doesn’t comment on speculation and has no information to share regarding a merger with BFI Finance or approaches from foreign financial institutions and investors. The bank said its partnership with BFI Finance is an ongoing strategic business collaboration.
BFI Finance spokesperson Dian Fahmi said the company isn’t in “a position to comment on the activities or decisions of our shareholders,” adding that there are no new disclosures it can provide. Goldman Sachs declined to comment. Ng didn’t respond to requests for comment.
Ng’s interest in BFI Finance is held through Trinugraha Capital & Co, which owns about 51% of the firm. Mergermarket reported in April that BFI Finance’s controlling shareholder was exploring a partial sale and had appointed Goldman Sachs as an adviser. About a week prior, on April 16, BFI Finance’s shares jumped 25%, the most since 2010.
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BFI Finance has fallen from that high, but is still up 8% this year, with a market value of 11.4 trillion rupiah. Bank Jago has slumped 50% to 13.7 trillion rupiah.
Other investors in Trinugraha include private equity firm Northstar Group and mining tycoon Garibaldi Thohir, according to its website.
Ng holds roughly 30% of Bank Jago. Other backers include Singapore sovereign wealth fund GIC Pte, ride-hailing and food delivery company PT GoTo Gojek Tokopedia, and Northstar co-founder Patrick Walujo.
Uploaded by Magessan Varatharaja
