| Type | Announcement |
| Subject | Proposed Conversion to Syariah Banking and Capital Reduction of PT Bank Maybank Indocorp (Indonesia) |
| Contents | Malayan Banking Berhad (“Maybank”) wishes to announce the proposed conversion to Syariah Banking, and corresponding reduction of share capital of its 96.83% owned subsidiary incorporated in Indonesia, PT Bank Maybank Indocorp ("BMI"), based on an earlier decision by BMI’s shareholders and subject to approval by the Indonesian central bank, Bank Indonesia. The decision to convert BMI’s business activities from Conventional Banking to Syariah Banking was undertaken by BMI’s shareholders in order to tap the vast and growing business potential of Syariah Banking in Indonesia. In line with the proposed conversion of business activities, a capital reduction exercise is undertaken that will result in the reduction of BMI’s authorised capital, issued capital and paid up capital from IDR945,069,000,000 (RM346,840,323) [representing 945,069 shares with a nominal value of IDR1,000,000 per share] to IDR819,307,255,056.87 (RM300,685,763) [representing 945,069 shares with a nominal value of IDR866,928.50 per share]. The capital reduction exercise is effected by way of elimination of retained losses, in line with Bank Indonesia regulations governing such a change in business activity. BMI’s books as at 31 December 2009 carried retained losses amounting to IDR136,396,427,619.31 (RM50,057,489). This exercise is undertaken to enable BMI to make a fresh start under its new business activity of Syariah Banking, with a balance sheet that reflects fair value, without being burdened by the accumulated losses. This capital reduction exercise will not have any material effect on the earnings or assets of the Maybank Group for the year ending 30 June 2010. We are pleased to attach herewith the media release (released in Indonesia today) in relation to the capital reduction exercise. This announcement is dated 23 June 2010. Exchange Rate: 100 Indonesian Rupiah = 0.0367 Malaysian Ringgit |
| Company Name | MALAYAN BANKING BERHAD |
| Stock Name | MAYBANK |
| Date Announced | 23 Jun 2010 |
| Category | General Announcement |
| Reference No | MB-100623-58116 |