Home Banking & Finance ADIB refutes report of talks to buy $1.1 billion stake in Indonesian...

ADIB refutes report of talks to buy $1.1 billion stake in Indonesian bank

The Islamic bank said that it strongly denies that it is in talks to acquire a minority stake in the Indonesian lender

ADIB unveils nationwide business banking expansion plan
ADIB Business Banking is expanding its presence in key business ecosystems to support SMEs. Image credit: WAM

UAE’s Abu Dhabi Islamic Bank (ADIB) said it is not in talks to acquire a $1.1 billion stake in Bank Syariah Indonesia after a media report said the Shariah-compliant lender is considering tapping into Southeast Asia’s fast-growing Islamic finance market.

The Islamic bank said in a bourse filing that it strongly denies that it is in talks to acquire a minority stake in the Indonesian lender while calling the report “media speculation.”

Earlier on Wednesday, Reuters reported that ADIB is considering buying a 15% stake in Bank Syariah Indonesia from Bank Rakyat Indonesia.

Sources familiar with the matter said discussions and deliberations are in the early stages and there is no guarantee a deal will be finalised.

The potential acquisition was expected to result in one of the biggest banking deals in Southeast Asia in recent years if the deal materialises.

Bank Syariah Indonesia has been expanding its presence in the Middle East, having opened a representative office in Dubai International Financial Centre in early January 2022 and obtained approval in August 2023 to become a full branch.

The bank was founded in 2021 following the merger of three banks – Bank Syariah Mandiri, Bank BNI Syariah and BRI Syariah Tbk to create one of the biggest Islamic banks in the world.

Meanwhile, Abu Dhabi’s Mubadala Investment Company sold its 7.6% stake in ADIB to a unit of investment firm National Holding in May 2023.