Wednesday, March 26, 2008

Malaysia's Maybank to acquire Indonesia's sixth largest lender for U.S.$2.7 billion
Source: The Jakarta Post

Malaysia's top lender Maybank said Wednesday it plans to acquire Indonesia's sixth largest bank, Bank Internasional Indonesia, for a total US$2.7 billion s part of an aggressive regional expansion.

In a statement to the stock exchange, Maybank said it has agreed to buy Sorak Financial Holdings Pte. Ltd., which owns 56 percent of Bank Internasional, for US$1.5 billion. Maybank will then make a tender offer for the remaining 44 percent stake n Bank Internasional for US$1.2 billion, it said.

Sorak is 75 percent-owned by Singapore's Temasek Holdings and 25 percent by Kookmin Bank of South Korea.

"The acquisition will transform our growth prospects in Indonesia and is a huge step forward in our strategy to regionalize our perations through investments in selected high growth markets," Maybank said.
Bank Internasional, which has a network of 230 branches and some 700 ATMs, is expected to benefit from a consolidation in Indonesia's overcrowded banking sector, it said.

The deal will help Maybank gain a strong foothold in ndonesia's high growth banking industry and capture the remittance and trade finance products markets, the bank said.

Following the completion of the takeover, overseas operations will make up 30 percent of Maybank's total revenue, up from 19 percent currently, said its acting Chief Executive Aminuddin Mohmad Desa.

Apart from Indonesia, Maybank has also strengthened its presence in Vietnam. Last week, it announced plans to buy 15 percent of Vietnam's An Binh Bank for 430 million ringgit (US$135 million).
Aminuddin said Maybank is considering other banking takeovers. He said it has taken a preliminary look at Thailand and the Middle East, but nothing frm has been decided. (*)