Quick Note - Bank Danamon Indonesia (BDMN IJ) (Neutral) - Proposed merger with MUFG Indonesia

Research evidence excerpt

Quick Note - Bank Danamon Indonesia (BDMN IJ) (Neutral) - Proposed merger with MUFG Indonesia

Nomura Securities Malaysia Sdn Bhd

Bank Danamon Indonesia BDMN.JK BDMN IJ 12 May 2026

EQUITY: BANKS

RatingProposed merger with MUFG Indonesia Remains Neutral

Target price IDR 2,590 RemainsQuick Note

Closing priceBank Danamon has submitted a plan to explore a potential integration with MUFG 11 May 2026 IDR 4,700

Indonesia (unlisted) (refer to the MergerPlan for details). We expect to see improved

market positioning for BDMN within the Indonesia banking sector, if the merger is

successfully concluded. Based on FY25 financials – assuming the transaction materializes Research Analysts

– we estimate the merged entity would be the seventh-largest bank by assets (or deposits Indonesia Research Teamor loans) in Indonesia, but it is likely to have a superior equity structure (ranked fifth); refer

Tushar Mohata, CFA - NSMto the charts below for more details on the pro-forma entity’s comparisons from its peers. tushar.mohata@nomura.com

Management expects the merger to become effective some time in 2027E, and we think +60(3)20276895

this might happen in 3Q27F. We also believe should the merger be finalized, the bank

Onshore expertcould seek to de-list from the Indonesian stock exchange (IDX), possibly necessitating a

Mandatory Tender Offer (MTO) at an appropriate time. Erwin Wijaya (erwin.wijaya@verdhana.id)

During the previous Tender Offer (TO) in 2018, the TO price was set at IDR8,921 per Theonshoreexperts,whoare

BDMN share. In a scenario of a future TO that requires BDMN to de-list from the IDX, employedbyPTVerdhanaSekuritas

there is a possibility that the price could be lower than the 2018 TO. However, we believe Indonesia(“Verdhana”)andarenot