Setback for Maybank’s acquisition of Indonesian bank
KUALA LUMPUR: Malayan Banking Bhd’s plan to acquire PT Bank Internasional Indonesia TBK suffered a setback due to new take-over rules imposed by Indonesia’s regulators.
Maybank said Tuesday that it had received a letter from Bank Negara Malaysia (BNM) that due to recent changes of take-over rule enacted by the Indonesian Government on June 30, that its take over of the bank might result in losses for Maybank.
“The proposal may result in Maybank potentially incurring material losses from selling down of the shares and write-down of investment upon the implementation of the New Take-Over Rule,” it said.
“In this regard, BNM informed that its approval given under Section 29 of the Banking and Financial Institutions Act 1989 for the proposed acquisition via its letter dated March 25 has been revoked,” it said.
Under the New Take-Over Rule, a new controlling shareholder is obliged to divest to public shareholders, a minimum of 20% and at least 300 parties within two years after the tender offer is undertaken.
Maybank had earlier met with Badan Pengawas Pasar Modal and Lembaga Keuangan (Bapepam), Department Keuangan of Indonesia for a waiver from complying with the abovementioned ruling.
However, Maybank said Bapepam had informed it that the waiver would not be considered.
_____________________________________________________Maybank said Tuesday that it had received a letter from Bank Negara Malaysia (BNM) that due to recent changes of take-over rule enacted by the Indonesian Government on June 30, that its take over of the bank might result in losses for Maybank.
“The proposal may result in Maybank potentially incurring material losses from selling down of the shares and write-down of investment upon the implementation of the New Take-Over Rule,” it said.
“In this regard, BNM informed that its approval given under Section 29 of the Banking and Financial Institutions Act 1989 for the proposed acquisition via its letter dated March 25 has been revoked,” it said.
Under the New Take-Over Rule, a new controlling shareholder is obliged to divest to public shareholders, a minimum of 20% and at least 300 parties within two years after the tender offer is undertaken.
Maybank had earlier met with Badan Pengawas Pasar Modal and Lembaga Keuangan (Bapepam), Department Keuangan of Indonesia for a waiver from complying with the abovementioned ruling.
However, Maybank said Bapepam had informed it that the waiver would not be considered.
When banks succumbed to politics, they lost. When there's a loser, there must be a winner. So who won? Amirsham Abd Aziz could be one of them. He got to be a senator. He was then named as Minister in the Prime Minister's Department in charge of the Economic Planning Unit. He was awarded the Tan Sri. He had people wiki his name. Though at a price. But hey, you can humiliate me everyday if I get to be Amirsham Abd Aziz.
Any other winners? Well you know the drill. You read them blogs. You know them allegations. You know there won't be any investigations. Because you know they won't be any police report. You know it'll be swept under the carpet sooner rather than later.
So should we care?
We should because there are other losers as well. The Permodalan Nasional Berhad (PNB)? It holds more than half of Maybank shares. Who invested in PNB through their ASB, ASN, ASW and the rest of its unit trusts? Us Malaysians. And why do them Public Mutual dudes are able to give better returns than the PNB? Or maybe them PNB is not unlike Petronas, always bailing out them Puppet Master's companies at our expense when we're not looking? Them bank employees? They could have gotten handsome bonuses in these trying times. Or they could be laid off should the new CEO wanna take the easy way out to recover them losses in the guise of reducing costs and increasing productivity.
So should our politicians care? Our Government?
Guess not. We are just collateral damages.
Image borrowed without permission from Giovanna Casotto's Bitch in Heat series.
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