Maybank pays RM4.26b for stake in BII

Source TheStar

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has completed the acquisition of the 55.6% equity interest in PT Bank Internasional Indonesia (BII) for RM4.26bil (SGD$1.77bil).

In a filing to Bursa Malaysia, Maybank said Fullerton Financial Holdings and Kookmin Bank, stakeholders of the shares, had agreed to provide a combined rebate of RM758.9mil (SGD$315.2mil) for the total purchase consideration.

The arrangement resulted in the implicit price payable per BII share reduced to Rp433 from Rp510, it said.

However, for the avoidance of doubt, the tender offer for the remaining shares in BII will still be conducted at Rp510 per BII share, Maybank said.

Last Thursday, Bank Negara asked Maybank to re-negotiate the price with Fullerton and Kookmin as the original price at Rp510 per share was considered too high.

”It has been an intensive process to bring this transaction to a close but we are happy that we have all now come to an agreement.

”Moving forward, our focus will be on making good our investment in BII and working with BIIs current management to grow the bank despite the very challenging economic environment globally,” said Maybank chief executive officer Datuk Seri Abdul Wahid Omar.

The acquisition expands Maybank’s presence in Indonesia which it had always recognised as a key market for the bank as it had set its sight to becoming a leading regional financial services group.

Maybank signed on March 26 a conditional sale and purchase agreement with Fullerton and Kookmin Bank to acquire up to 100% of Sorak Financial Holdings Pte Ltd for a cash consideration of RM4.8bil (SGD$2.08bil). Maybank also agreed to make a tender offer for the remaining 44.3% shares held by the remaining shareholders of BII.

The total amount for the tender offer is approximately RM3.8bil (SGD$1.65bil), bringing the total value of the proposed acquisition to about RM8.6bil.

Sorak is 75% owned by Fullerton, a wholly-owned subsidiary of Temasek Holdings (Private) Ltd and 25% owned by Kookmin Bank.