Tokyo

Japan’s Mitsubishi UFJ Financial Group Inc. said Monday that it will book a special loss of 207.4 billion yen for April-December due to a plunge in the stock price of an overseas unit.

Mitsubishi UFJ concluded that the acquisition price for PT Bank Danamon Indonesia was too high, as the subsidiary’s stock price fell to less than half of the per-share acquisition value as of Monday.

Mitsubishi UFJ will write down the gap between the acquisition price and the actual value of the Indonesian bank’s assets as the special loss.

Still, the major Japanese banking group currently has no plans to change its group net profit target of 900 billion yen for the full year to March 2020 as the Indonesian bank’s stock price may rebound.

MUFG Bank, the core arm of Mitsubishi UFJ, raised its stake in PT Bank Danamon from 40 percent to 94.1 percent in April and made it a subsidiary.

But MUFG Bank was unable to make the Jakarta-based bank a wholly owned subsidiary due to a policy of Indonesian authorities, leaving the Indonesian bank listed on a stock exchange.

PT Bank Danamon’s stock price has been showing wild swings as a result of the plunge in the number of its shares traded on the market.

Jiji Press