Dubai Islamic Bank to raise stake in Bank Panin Syariah
Dubai Islamic Bank (DIB) has submitted a proposal to Indonesia’s Financial Services Authority (OJK) to boost its stake in Jakarta-listed Bank Panin Syariah (PNBS).
OJK sharia banking department head Edy Setiadi said that the agency is currently processing the application DIB had recently submitted.
DIB intends to increase its ownership in Panin Syariah to 40%.
In addition, the OJK is in talks with its counterparts in the UAE to sign a memorandum of understanding that will form a cooperative bond between the two economies.
Edy added that OJK expects to complete the talks and grant approval for DIB later this year.
Following the increase of its stake in PNBS to 40%, DIB will be considered a controlling shareholder in Panin Syariah and will have rights determining the lender’s board of directors (BoD) and board of commissioners (BoC).
DIB now controls a 24.9% stake in PNBS, while PNBS owner Panin remains the majority shareholder with 64.01%. In May 2014, DIB has acquired Panin Syariah’s shares for worth IDR 251.79 billion (US$21.7 million), in two stages.
Roosniati Salihin vice president director of Panin Bank said: "The boards are already complete with their existing members. Any changes will be discussed after DIB acquires the OJK’s approval."
"We want to be able to have access to DIB’s finances and prudence, and its efforts to meet good corporate governance principles. This will be applied to other UAE lenders wishing to enter our banking industry as well," Edy added.