JAKARTA: Shares in PT Bank Danamon Indonesia soared to their highest in 17 years after Japan's Mitsubishi UFJ Financial Group (MUFG) said it planned to buy a majority stake in the country's fifth-largest lender.
MUFG said it had agreed with Danamon shareholders to buy 73.8% of the bank and would like to raise that to 100% as it looks to strengthen its presence in Southeast Asia's biggest economy.
Danamon's shares rose as much as 16.7% in early trade on Wednesday to 7,000 rupiah per share.
The first stage of the acquisition - a purchase of a 19.9% stake from Singapore state investor Temasek - was agreed at 8,323 rupiah per share or 15.88 trillion rupiah (US$1.2 billion).