ASEAN KEY DESTINATIONS
Malaysia: Approval for Maybank’s BII purchase revoked
Malaysia’s central bank has revoked its approval of the Maybank’s acquisition of Bank Internasional Indonesia (BII), Reuters quoted The country’s biggest lender as saying Tuesday.
"The central bank has noted that as a result of the recent changes of the new regulations (in Indonesia) the proposal may result in Maybank potentially incurring material losses from selling down of the shares and write-down of investment upon the implementation of the new take-over rule," Maybank said in a statement to the stock exchange.
Maybank added it would seek legal and financial advice over the central bank's decision.
Indonesia's capital market watchdog has raised the threshold for tender offers in takeovers to 50 percent from 25 percent and requires a buyer to sell some shares to ensure the target company will have a 20 percent free float within two years after the tender offer.
Malaysia's Maybank, which recently bid $2.7 billion for a 55.5 percent stake in BII from Singapore state investor Temasek Holdings and South Korea's Kookmin Bank , has said it plans to spend another $1.2 billion to buy the rest of the shares.
Maybank had a meeting with Indonesia's Capital Market Supervisory Agency to ask for a waiver from the new ruling but its appeal was rejected last week.
Maybank's bid represented a 23 percent premium on BII's share at that time, considered to be the highest premium ever paid by a foreign buyer for an Indonesian bank. Indonesia's central bank has approved Maybank's acquisition of BII.
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