Mitsubishi UFJ Financial Group (TYO:8306) is assessing various strategic options for Bank Danamon Indonesia, which could involve taking the lender private or divesting part of its holding to meet public ownership requirements, Bloomberg News reported on Tuesday.
The Japanese banking giant has engaged a financial adviser to assist with the planning process, though no final decision has been made and a deal may not materialize, the news wire said.
A representative for MUFG declined to comment to the news outlet, while Danamon said it is reviewing recent regulatory changes and will take appropriate steps to remain compliant.
The development followed the new Indonesian rules introduced earlier this year, which required listed companies to raise their public floats within three years, the news outlet reported.
MUFG currently holds approximately 92.5% of Danamon, which has a market capitalzation of 47 trillion rupiah, the report said.
MUFG did not immediately respond to' queries at press time.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)