Saturday, December 4, 2010

Maybank gets extension until June 2011 to sell down BII stake

KUALA LUMPUR: MALAYAN BANKING BHD [] has been granted an extension until June 1, 2011 to complete its sell-down of its stake in PT Bank Internasional Indonesia.

Maybank said on Friday, Dec 3 Indonesia's Badan Pengawas Pasar Modal and Lembaga Keuangan (Bapepam) had granted the extension for Maybank to fulfill the requirement.

'Maybank may request for further extension if the sell down exercise would result in Maybank incurring a potential loss in excess of 10% of Maybank's original value of BII acquisition, preferably two weeks before June 1, 2011,' it said.

Maybank owns 97.5% of BII which it had acquired in 2008 amid much criticism that it had paid too much for the Indonesian bank. It had until end of this year to pare down its stake. However, the run-up in BII shares in recent weeks had proved right Maybank's strategy to acquire BII.

The Edge FinancialDaily had in November reported Maybank's blended cost of acquiring BII in 2008 ranged between 429 rupiah to 455 rupiah a share. The cost blend is the result of Maybank buying the shares in three different tranches from Fullerton Financial Holdings-Kookmin Bank, BII shareholders as well as through a tender offer.

According to reports, the cost price is a blend of a 55.6% block from Fullerton-Kookmin at 433 rupiah per share, a 16.6% block from certain BII shareholders of 433 rupiah per share and 25.3% via the tender offer for 510 rupiah per share.

Amid public criticisms over the deal at that time and the roiling global financial crisis, Bank Negara Malaysia had also intervened in the deal, which resulted in the Fullerton-Kookmin consortium reducing its price from 510 rupiah to 433 rupiah.

In FY2009, Maybank wrote down its carrying value of BII by some 20% to 364 rupiah per share due to a goodwill impairment charge.

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