Maybank has entered into a conditional sale and purchase agreement to acquire up to 100% of Sorak Financial Holdings for a cash consideration of approximately $1.5 billion.
Maybank said that this transaction will allow it to be the controlling shareholder of Bank Internasional Indonesia (BII). The transaction price was agreed on a willing-buyer and willing-seller basis.
Sorak Financial is 75%-owned by Financial Fullerton Financial Holdings, a wholly owned subsidiary of Temasek Holdings Private Limited, and 25%-owned by Kookmin Bank. Sorak holds about 56% equity interest in BII.
As a result of this transaction, Maybank will also be making a tender offer for the remaining 44.3% shares held by remaining shareholders of BII. The total amount involved for the tender offer is approximately $1.2 billion, bringing the total value of the potential acquisition to about RM8.6 billion.
Bank Negara Malaysia has given its approval for the proposed acquisition. The acquisition is now conditional upon regulatory approval from Bank Indonesia and the approval of Maybank shareholders.
The proposed acquisition is expected to be completed within six months following the receipt of the above approvals, after which Maybank will make a tender offer for the remaining shares in BII.