Malayan Banking Berhad ("Maybank" Or "Company")

Sep 25, 2008 Back
Type Announcement
Subject MALAYAN BANKING BERHAD (“MAYBANK” OR “COMPANY”)
Contents PROPOSED ACQUISITION OF UP TO 100% EQUITY IN PT BANK INTERNASIONAL INDONESIA TBK (“BII”) PURSUANT TO:

(A) PROPOSED ACQUISITION OF THE ENTIRE EQUITY INTEREST IN SORAK FINANCIAL HOLDINGS PTE. LTD. (“SORAK”) FOR A TOTAL CASH CONSIDERATION OF APPROXIMATELY INDONESIAN RUPIAH (“RP”)13.9 TRILLION OR THE EQUIVALENT OF APPROXIMATELY RM4.8 BILLION (“PROPOSED ACQUISITION”); AND

(B) TENDER OFFER BY MAYBANK ARISING FROM THE PROPOSED ACQUISITION FOR THE REMAINING EQUITY INTEREST IN BII NOT OWNED BY SORAK AND ANY NEW ORDINARY SHARES IN BII THAT MAY BE ISSUED PURSUANT TO THE EXERCISE OF OPTIONS UNDER BII’S EMPLOYEE SHARE OPTION PLAN TO BE SATISFIED IN CASH (“TENDER OFFER”)

COLLECTIVELY REFERRED TO AS THE “PROPOSAL”.
(Unless stated otherwise, definitions used in this announcement shall carry the same meaning as defined in the announcement dated 16 September 2008).

We refer to the announcement dated 16 September 2008 in relation to the Proposal.

Aseambankers Malaysia Berhad, on behalf of Maybank, wishes to announce that Bank Negara Malaysia (“BNM”) via its letter dated 25 September 2008 had informed Maybank that their earlier approval pursuant to Section 29 of the Banking & Financial Institutions Act 1989 for the Proposal is now subject to the following conditions:

(a) Maybank to obtain an extension to the 26 September 2008 deadline, being the last date to fulfill the conditions precedent as stipulated in the Share Sale Agreement dated 26 March 2008; and

(b) Maybank to obtain a new agreement on a purchase price that will not result in substantial impairment under the international financial reporting standards that would impact the fundamental financial soundness of Maybank.

In its letter of 25 September 2008, BNM informed that the current financial turmoil in the global financial market and its impact on the regional financial markets have necessitated BNM to reassess the Proposal. These developments have had an adverse impact on the initial assumptions underlying the post acquisition financial projections on Maybank which formed the basis on which the approval was given by BNM.

The assessment indicates that despite the flexibility granted by Bapepam on the 20% sell-down requirement, the increasingly higher risk premium in financial markets and the excessively higher cost of capital globally, including in Malaysia and Indonesia, will still result in substantial impairment of Maybank’s investment in BII. This in turn will affect Maybank’s financial soundness and overall stability of the Malaysian financial system.

Maybank will now engage with Fullerton Financial Holdings Pte. Ltd. and Kookmin Bank on this latest decision from BNM.

This announcement is dated 25 September 2008.

 

Announcement Info

Company Name MALAYAN BANKING BERHAD  
Stock Name MAYBANK    
Date Announced 25 Sept 2008  
Category General Announcement
Reference No CU-080925-82855