Singapore Telecommunications (Singtel) has acquired a stake of around 16.26% in Bank Fama International, an Indonesian bank, for IDR 500 billion ($35 million).

The transaction was carried out by its fully-owned subsidiary — Singtel Alpha Investments by purchasing 2.4 billion new shares issued by the Indonesian bank.

According to Singtel, the cash consideration was determined via a privately negotiated process and was funded through internal sources.

The unaudited net asset value of Bank Fama International as of 30 June 2021 was IDR 1,040 billion ($73 million). The bank is majority-owned by a subsidiary of Elang Mahkota Teknologi, an Indonesian media and technology conglomerate.

Singtel said that it is investing in Bank Fama International to target banking opportunities in Indonesia. The Singaporean telecommunications firm also has a digital banking joint venture in Singapore with Grab Holdings Limited, which is also an investor in the Indonesian bank.

The joint venture with Grab had applied for a digital banking licence in Malaysia last July.

Singtel stated: “Indonesia is home to ASEAN’s largest unbanked and underbanked population. With their strong track record in financial services and lifestyle services, the investors will bring significant capabilities and insights from an extensive customer base to develop Fama’s digital banking proposition and drive greater financial inclusion.

“This latest investment in digital banking is consistent with Singtel’s strategic reset of riding digital growth trends to build sustainable new businesses across Asia, particularly in markets where the Group has a strong presence.”

  Bank Fama International, Banking acquisition news, Banking industry news, Elang Mahkota Teknologi, Grab, Indonesia, Singapore, Singapore Telecommunications, Singtel, Singtel Alpha Investments