Bandung-based small lender Bank Artos has denied rumours that said it was in talks to partner with gojek or operate as its banking arm, as reported by DealStreetAsia.
“We have never been approached, discussed [to partner] with gojek or any other similar entity. Such rumour is not coming from us,” Bank Artos acting president director Deddy Triyana reportedly said.
Speculation began emerging since Bank Artos announced that in August, Hong Kong-based investment firm Wealth Track Technology (WTT) and Jakarta-based IT service provider Metamorfosis Ekosistem Indonesia (MEI) have bought the majority of its stock, stating 51 per cent stake in a filing to the Indonesia Stock Exchange (IDX) on August 22.
WTT is owned by Patrick Walujo, founder of private equity firm Northstar Group, an early gojek backer, said that it will purchase a 13.35 per cent stake in the bank, while MEI will acquire 37.65 per cent.
MEI was founded by Jerry Ng, a former chief executive at small lender Bank Tabungan Pensiunan Nasional (BTPN). Ng was the brain behind BTPN’s transformation into a tech-based bank.
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Bank Artos had submitted the stake acquisition plan to the Financial Services Authority (OJK) for its approval. In the meantime, the lender’s stock has been suspended four times since August as stock price climbs 1,300 per cent since early this year.
Bank Artos has previously said that it aims to revamp its core business, which focusses on commercial banking services for SMEs, to become a digital bank.
After the acquisition, the lender also plans to raise US$106-113 million through a rights issue.
According to its prospectus, the company plans to issue a maximum of 15 billion new shares at a nominal price of IDR100 (US$0.0071) apiece, although it is yet to disclose the exercise price. Such a move is intended to increase Bank Artos’ core capital, which stood at US$9.1 million at the end of June this year, to more than US$71 million.
Bank Artos revealed that the proceeds from the rights issue will be allocated for new product development, IT infrastructure investments, and talent acquisition.
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