Deals and IPOs

Malaysia's Maybank in $2.7 Billion Bid for BII


Malaysian lender Malayan Banking (Maybank), has secured a controlling stake in Indonesia's
sixth-biggest lender, Bank Internasional Indonesia Tbk (BII), for $1.5 billion, Maybank said on Wednesday.

Maybank, which is buying most of the 56 percent stake from Singapore state investment firm Temasek, will also launch a tender offer for the remaining 44 percent of BII for about $1.2 billion, Maybank said in a statement.

Maybank, Malaysia's biggest lender, did not give a per share value of the deal, but the headline price implies 511 Indonesian rupiah per BII share, a premium of 23 percent to the closing price on Tuesday, according to Reuters Data.

"This acquisition enables Maybank to leapfrog into the Indonesian banking market with a significant, well-established presence and attractive platform for further growth," said Aminuddin Mohamad Desa, Maybank's acting chief executive. "We are excited as the Indonesian banking sector remains underpenetrated with excellent long-term potential."

Global banks are converging on Indonesia to take advantage of strong growth in Southeast Asia's biggest economy, which is seeing fast-expanding loans and higher earnings potential for its financial sector.

Maybank was one of the three contenders, among them Bank of China and South Korea's Kookmin, that remained after HSBC, Europe's biggest bank, dropped out of the race, a Reuters report said on Tuesday.

Maybank expects to complete the acquisition within six months of securing approvals from shareholders and the Indonesian central bank, following which it will make the tender offer for the remaining shares in BII, the bank said.

The stake of about 56 percent in BII is held by Sorak Financial Holdings, in which Temasek subsidiary Fullerton Financial Holdings has a 75-percent stake, with Kookmin Bank holding the rest, the statement added.

BII operates in all major banking segments in Indonesia, with a network of more than 230 branches and 700 ATMs, as well as Internet banking and call center operations.