Shares in PT Panin Financial rose as much as 9.26 percent on Tuesday after Japan’s Dai-ichi Life Insurance Co Ltd said it was buying a 40 percent stake in its insurance unit PT Panin Life for 3.3 trillion rupiah ($336.5 million).
Under the terms, the Japanese insurer will hold a 5 percent stake in Panin Life by acquiring newly issued shares. It will also buy 36.8 percent of the shares in a holding company that will own the rest of Panin Life, Dai-ichi said in a statement on Tuesday.
Global insurers are attracted to Indonesia as the rapid economic growth in Southeast Asia’s biggest nation is making insurance products more affordable for its 240 million population.
Shares of the Indonesian financial firm were up 7.41 percent at 290 rupiah, while the broader index was up 0.62 percent.
$1 = 9,805 rupiah Reporting by Andjarsari Paramaditha, Editing by Jonathan Thatcher and Gopakumar Warrier