The Board of Directors of Malayan Banking Berhad (“Maybank”) wishes to announce that Maybank Indonesia, a subsidiary of Maybank, has on 11 January 2017 entered into a conditional shares purchase agreement (“CSPA”) with PT Reliance Capital Management (“RCM”) for the proposed disposal of Maybank Indonesia’s entire equity interest of 68.55% in WOM Finance to RCM (“Proposed Disposal”).

RCM is a limited liability company incorporated under Indonesian Law and has subsidiaries that provide financial services, including financial services in investment (securities and asset management), protection (general, health, life, and sharia insurance) and financing (multi-finance, banking, and venture capital).

The Proposed Disposal involves the sale of Maybank Indonesia’s entire equity interest in WOM Finance to RCM for a total cash consideration of approximately Rupiah 673.77 billion (equivalent to approximately RM229.08 million based on the exchange rate of Rupiah 1 = RM0.00034 as at 11 January 2017), plus the difference between the book value of WOM Finance as set out in the audited accounts of WOM Finance for the financial year ended 31 December 2016 and the financial year ended 31 December 2015 in proportion to Maybank Indonesia’s 68.55% equity interest in WOM Finance. The completion of the Proposed Disposal is expected to occur by the first quarter of 2017, upon the conditions precedent of the seller and buyer being fulfilled as prescribed in the CSPA.

WOM Finance is incorporated in Indonesia and listed on the Indonesia Stock Exchange. WOM Finance provides financing for new and used motorcycles, with the majority of consumer financing granted for well-established motorcycle brands. The Proposed Disposal is undertaken as part of Maybank Indonesia’s strategic initiative to maximise its capital use and streamline its customer segmentation which will optimise its resources in the most efficient manner. WOM Finance will cease to be a subsidiary of Maybank Indonesia with effect from the completion of the Proposed Disposal. However, WOM Finance will continue to be a significant business partner of Maybank Indonesia in the future.

The Proposed Disposal will not have any effect on the issued and paid-up share capital and shareholding of the substantial shareholders of Maybank, and it is not expected to have any material effect on the earnings per share, net assets per share and gearing of the Maybank group for the financial year ending 31 December 2017.

None of the directors and/or major shareholders of Maybank and/or persons connected with them have any interest, direct or indirect in the Proposed Disposal.

This announcement is dated 12 January 2017.