MUFG’s Indonesian loan subsidiaries announce merger

MFIN will be dissolved, and ADMF will be the surviving entity.

MUFG is merging two of its Indonesian lending subsidiaries.

PT Adira Dinamika Multi Finance Tbk (ADMF) and PT Mandala Multifinance Tbk (MFIN) have entered into a merger agreement. MUFG and ADMF acquired MFIN in June 2023.

ADMF will be the surviving entity, and MFIN will be dissolved.

ADMF provides auto loans and multi-purpose loans in Indonesia; whilst MFIN mainly provides loans for motorbikes, and reportedly has a strong customer base in eastern Indonesia’s lower-middle income segment.

MUFG said that the merger aims to strengthen ADMF’s position as a market leader in Indonesia’s multifinance industry.

The merger is subject to approval of relevant regulators including the Financial Services Authority.