Corp News

Maybank Acquires of Sorak Financial Holdings

30 September 2008

4 min read

Maybank is pleased to announce that it has today entered into a supplemental agreement dated 30 September, 2008 with Fullerton Financial Holdings (FFH) and Kookmin Bank (KB) wherein the parties have agreed to the following:

  1. To complete the proposed acquisition on 30 September, 2008
  2. FFH and KB to provide a combined rebate/price reduction of RM758.9 million (SGD315.2 million) to the total purchase consideration which translates to an implicit price payable per BII share of Rp433. The rebate effectively lowers by 15% the earlier agreed price of Rp510 per BII share.


The parties also agreed to maintain the Tender Offer for the remaining BII shares at Rp510 per BII share as provided for in the Share Sale Agreement dated March 26, 2008 for the proposed acquisition.


Taking into consideration the deposit of RM483.8 million (SGD208.8 million) paid earlier on March 26, 2008, the total cost of acquisition of the effective 55.6% equity interest in BII held by Sorak is approximately RM4.26 billion (SGD1.77 billion).


Maybank President and CEO Dato’ Sri Abdul Wahid Omar said, “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. Moving forward, our focus will be on making good our investment in BII and working with BII’s current management to grow the Bank despite the very challenging economic environment globally.”


“This acquisition expands our presence in Indonesia which we have always recognized as a key market for us as we set our sights to becoming a leading regional financial services group,” he added.


Maybank signed on March 26, 2008 a conditional sale and purchase agreement with FFH and KB to acquire up to 100% of Sorak for a cash consideration of approximately RM4.8 billion (SGD2.08 billion). Maybank also agreed to make a tender offer for the remaining 44.3% shares held by remaining shareholders of BII. The total amount for the tender offer is approximately RM3.8 billion (SGD1.65 billion), bringing the total value of the proposed acquisition to about RM8.6 billion. Sorak is 75% owned by FFH, a wholly owned subsidiary of Temasek Holdings (Private) Limited and 25% owned by KB.