Virtual bank WeLab announced the acquisition of PT Bank Jasa Jakarta (BJJ), a commercial bank in Indonesia, with plans to launch its second digital bank in the second half of 2022 following its successful launch in Hong Kong.
Headquartered in Hong Kong, WeLab has drawn interest from existing and new investors who have already contributed US$240 million which will be used to acquire the controlling stakes from its existing shareholders and tech investments.
The WeLab-led consortium, Welab Sky, has entered into a share purchase and subscription agreement with all the shareholders of BJJ.
According to the agreement, WeLab Sky will acquire the stakes of BJJ to become the sole controlling shareholder.
As the initial step, WeLab Sky has already completed the strategic investment for a 24% stake in BJJ.
The remaining stake for majority control will be completed upon obtaining the relevant regulatory approvals, including from the Financial Services Authority (Otoritas Jasa Keuangan) of Indonesia.
J.P. Morgan is acting as financial advisor to WeLab.
WeLab has an established presence in Southeast Asia since 2018 through a joint venture with Astra International to operate a licensed online lending app, Maucash, which already has more than three million Indonesian users.
Simon Loong, Founder and Group CEO of WeLab, said,
“We continue the journey that we started in 2018 to build one of the first pan-Asian digital banking platforms, first in Hong Kong and now in Indonesia. WeLab combines its advanced digital banking technology with the BJJ network to further grow the Bank’s business towards a bright digital future.
We look forward to building on this foundation with our fintech expertise, and success of operating a licensed digital bank in Hong Kong, to build a tech-driven digital bank that will be financially inclusive for the people of Indonesia.”
Handrie Wirawan, President Director of BJJ, said,
“We’re excited to welcome WeLab as the new shareholder to bring BJJ into the new digital banking era.
With the experience and expertise of WeLab in digital banking and fintech, we are confident that BJJ can further improve our customers’ financial wellbeing with advanced banking technology.”
