Maybank Finally Buys BII at a 15% Discounted Price

Malayan Banking Bhd (Maybank) finally acquires its acquisition of a 55.6% stake in PT Bank Internasional Indonesia (BII) at a price discounted by 15% from the initial agreement. The discount is given by Temasek Holdings Pte and Kookmin Bank.
Maybank is supposed to complete the acquisition of a 55.6% stake in BII for US$1.5 billion on September 26.
However, in Maybank's explanation to the Malaysian stock exchange authority on Tuesday, the bank was only willing to complete the acquisition with a price discounted by 15% or US$220 million.
It means Maybank buys BII shares from Sorak Financial Holdings Pte Ltd, a consortium set up by Fullerton Financial Holdings Pte Ltd and Kookmin Bank, for IDR433 per share, down from IDR510 per share that was previously agreed on.
Maybank will follow up the acquisition completion with a tender offer for a 44.4% public-owned stake at IDR510 per share, making the Malaysian bank have to prepare an additional fund of US$1.2 billion. The acquisition of BII is expected to expand Malaysia's market in Indonesia and strengthen Maybank's existence.
Maybank fails to meet the deadline to acquire BII shares on September 26 after the Malaysian central bank blocked the agreement, sparking speculation that the price offered was too expensive amid a crisis-hit bourse.
BII stock price is suspended temporarily by the Indonesia Stock Exchange (BEI). The bank share was last traded on September 26 and closed at IDR310 per share, down by 34.04% from IDR470 on September 25.
BII stock crashed after Maybank stated it could not meet the deadline to complete the acquisition on September 26.