SingTel Joins Grab and Emtek as Shareholder of Bank Fama

By Editorial Team 21/01/2022
Digital bank
Summary

Singtel Alpha Investments Pte Ltd, a subsidiary of Singapore Telecommunications Limited (Singtel), has acquired 2.4 billion new shares issued by PT Bank Fama International for a cash consideration of Rp 500 billion. It represents an equity interest of approximately 16.26 percent in Bank Fama. SingTel management's public disclosure to the Singapore Stock Exchange (SGX) stated the cash consideration was determined through a privately negotiated process and was funded via internal sources.

"Singtel is investing in Fama to pursue banking opportunities in Indonesia. Fama is majority-owned by a subsidiary of Elang Mahkota Teknologi Tbk, an IDX listed conglomerate in Media and Technology. Grab is also an investor in Fama," Singtel management said to SGX on Friday.

The company also said that 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. Singtel also has a digital banking joint venture (JV) in Singapore with NASDAQ-listed Grab Holdings Limite (Grab). The JV has applied for a digital banking license in Malaysia in July 2021.

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