REPUBLIKA.CO.ID, JAKARTA -- An investor is studying the possibility of acquiring a stake of Asia Financial Indonesia Pte Ltd (AFI) in Bank Danamon, the country's sixth largest bank in assets has confirmed.

A director of Bank Danamon Michellina Triwardhany said here on Thursday Asia Financial Indonesia Pte Ltd (AFI) had received from Japan's Bank of Tokyo-Mitsubishi UFJ (BTMU) an "expression of interest" in acquiring the stake.

However, AFI and BTMU are still in the process of negotiation, and there has not been any binding agreement between the two, Michellina said.

"Any deal would depend on the result of the negotiation. Negotiation do not always end with a binding agreement," she said.

Michellina called on the shareholders and stakeholders to be careful in making a deal, saying the bank has run normally.

Currently the bank is 67.37 percent owned by AFI, 6.5 percent by JPMCB-Frankiln Templeton Investment Funds and 25.7 percent by investing public.

Japan's Nikkei reported on Thursday Bank of Tokyo-Mitsubishi UFJ (BTMU) is seeking to acquire 40 percent stake in Bank Danamon to expand its business in Southeast Asia.

The stake is estimated to be worth US$1.76 billion or around Rp23.7 trillion.

BTMU already has interest in the country's banking industry. It has operated for 60 years in Indonesia as a foreign bank branch office.

BTMU will likely run against the Central Bank's "single presence policy" if it is to take over the 40 percent stake or became the majority shareholder in Bank Danamon.

The central bank's regulation allows an investor to be a majority shareholder only in one bank in the country. 

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