This has been one strange transaction. First there was the nail biting process of waiting for Indonesia’s central bank, Bank Indonesia, to approve the acquisition amid uncertainty of whether it violates the bank’s Sing Presence Policy.
Then, once approval was granted Malaysia’s central bank shot down the deal, agreeing with critics that the price paid for the bank to the Temasek Group was too high.
Now the parties have reached a settlement with Temasek giving a discount. What a way to negotiate! Unspun wonders if central banks from now can be incorporated as part of the negotiations strategy for acquisitions.
Malaysian holding companies Khazanah and PNB now own the Lippo Bank and Bank Niaga, and now BII. The Lippo and Niaga are apparently to be merged.
The fun now begins for the Malaysians to compete in Indonesia’s wild, wild West marketplace. It will not be an easy ride and they need to pay attention to how they tend to their image and how they respond to attacks that will inevitably occur. In short they need to take their Public relations efforts seriously, unlike in Malaysia where they deal with an emasculated Pres.
(And in case any skeptical readers out there think that Unspun is trawling for business with this posting, think again: Unspun has an exclusive contract with the largest foreign bank here that precludes him from taking on other banks)
Maybank completes BII deal after discount
The Jakarta Post � | �Thu, 10/02/2008 3:26 AM� | �Business
The Malayan Banking Bhd (Maybank) has completed the transaction over majority ownership in Bank Internasional Indonesia (BII) after agreeing to a discount offer from the Sorak consortium.
Maybank acquired 55.6 percent shares in BII on Tuesday for US$ 1.24 billion after consortium members, Singapore’s Temasek Holdings and South Korea’s Kookmin Bank, bowed down to the demand of Malaysia’s central bank of lowering the selling price.
In a statement sent to the Malaysia’s stock exchange on Wednesday, Maybak said that the consortium offered a discount worth $220.5 million, making the price per share significantly lower to Rp 433 (4.6 US cents) per share from Rp 510 that was agreed earlier.
Maybank president and CEO Abdul Wahid Omar said in the statement: “It has been an intensive process to bring this transaction to a close but we are happy that we have all now come to agreement.