ASEAN KEY DESTINATIONS
Malaysia’s Maybank’s BII deal given more time
Malaysia's central bank has reinstated its approval for Maybank's $2.7 billion bid for Bank Internasional Indonesia (BII), Reuters quoted Maybank as saying Tuesday.
Maybank said the central bank's decision came after Indonesia's capital markets watchdog, Bapepam, informed the bank that it may allow Maybank more time to cut its stake in BII by 20 percent than the original two-year period.
State-controlled Maybank unveiled a deal to buy a 56 percent stake in BII in March. But it hit a snag in July when Indonesia introduced a new takeover rule which requires an acquirer in a general offer to reduce its stake in the takeover target by 20 percent in two years.
Malaysia's central bank subsequently blocked the deal on concerns the new Indonesian takeover rules could lead to material losses for Maybank.
Maybank said on Tuesday that Bapepam would allow an extension of the timeframe to cut its stake in BII if a re-float exercise led to material losses to Maybank.
"Bank Negara Malaysia (BNM) has reinstated its earlier approval for Maybank to undertake the proposal given that Bapepam has agreed to grant the aforesaid flexibilities on the selldown requirement," Maybank said in a statement to stock exchange Bursa Malaysia.
"With the approval of BNM being reinstated, barring any unforeseen circumstances, all conditions precedent to the share sale agreement have been met," it added.
Maybank would lose a 480 million ringgit deposit if the regulatory issue could not be resolved by a Sept. 26 deadline. The bank had already written off the deposit in its fourth-quarter results.
Maybank rattled investors when it unveiled the deal to buy a 56 percent stake in BII from Singapore state investor Temasek and South Korea's Kookmin Bank. Maybank had previously been criticised by investors for expanding too slowly outside its home market.