South Korea's Kookmin Bank said on Monday it would sell its 14 percent stake in Bank Internasional Indonesia (BII) to Malayan Banking for $378 million.
The sale proceeds represent 4.5 times Kookmin's cumulative investment in BII, but the sale is a setback in its plan to enter Southeast Asia's largest economy.
Malayan Banking, Malaysia's biggest lender, offered last week $2.7 billion to buy BII -- $1.5 billion for 56 percent held by Singapore state investor Temasek and Kookmin, and another $1.2 billion for the remaining 44 percent from minority shareholders.
Kookmin had been competing with Maybank, and Bank of China for Temasek's 42 percent
stake in the sixth-largest bank in Indonesia, sources had said.
Kookmin said in a filing with the Korea Exchange that it would sell 1.4 million shares in Sorak Financial Holdings, through which it owns its stake in BII, for 375 billion won (US$378 million).
The sale would be under a 'tag along' agreement with Temask on BII shares, Kookmin said. Kookmin spent about 83.5 billion won ($84 million) on the stake in BII. Last week a senior Kookmin official told Reuters it would sell the BII stake to Maybank.
Kookmin, South Korea's top lender, agreed earlier in March to buy 30 percent of Kazakhstan's CenterCredit for about $634 million as it seeks to expand in other parts of Asia beyond its saturated home market.