Maybank rejects S$236.4 m sweetener from Temasek

The Jakarta Post   |  Sat, 09/27/2008 7:15 PM  |  Business

The Malayan Banking Bhd (Maybank) has rejected a sweetener worth S$236.4 million in a form of a transaction rebate offered by Singapore’s Temasek Holdings in a bid to improve terms for controlling stake in PT Bank Internasional Indonesia (BII).

Earlier on Wednesday, Maybank requested renegotiations of the share purchasing price and the extension of the due date of the transaction from Friday.

This request, Temasek said, was made despite Malaysia’s central bank Bank Negara Malaysia had granted Maybank permission to continue with the transaction as all conditions under it had been fulfilled.

Previously, the central bank blocked the $2.7 billion deal on the basis that the transaction was overvalued amid currently volatile global financial market, prompted by the liquidity crisis in the U.S.

“Maybank has not accepted the improved offer by Fullerton Financial Holdings Pte. Ltd. made after the non--closing of the transaction yesterday,” Temasek said in a statement sent The Jakarta Post on Saturday.

Fullerton, a Temasek subsidiary, owns 75 percent shares in Sorak consortium, which in turn owns a 55.85 percent stake in BII, the country’s sixth largest bank by assets.

Temasek explained that at about 9.45pm on 26 September 2008, Fullerton sent a written offer to Maybank, offering to close the transaction with a rebate of S$236.4 million, hoping for the Malaysian bank to proceed with its earlier commitment to make a tender offer at Rp510 per share.

“The offer was made by Fullerton in the interest of the minority investors in Indonesia … Despite the offer of a rebate, Maybank did not accept the offer. We are aware that Kookmin Bank also made an offer,” the statement says.

Chairman of Indonesia’s and Financial Institutions Supervisory Agency (Bapepam-LK), Fuad Rahmany said Friday that investors would suffer losses if the transaction was to be postponed.

“According to the international capital market protocol, if a statement has been issued to the public, but suddenly changed, that can be considered as misleading information,” Fuad said as quoted by Bisnis Indonesia daily on Saturday.

He said he would not tolerate Maybank’s decision.
 
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