Wednesday, July 30, 2008

Bank Negara 'saves' Maybank

The decision by Bank Negara to revoke its approval for Maybank’s proposed acquisition of 100 per cent equity in PT Bank Internasional Indonesia, was timely.


Being the largest bank in Malaysia, the decision is seen to save the bank from incurring unnecessary losses due to the new regulations imposed by Indonesian Badan Pengawas Pasar Modal and Lembaga Keuangan (Bapepam).

Less than 12 hours after BNM announcement, Maybank’s shares rose sharply on Wednesday morning. By 10am, it was up 6.0 per cent at RM8.0 ringgit after opening at RM7.80.

In March this year, Maybank entered into a share sale agreement with Fullerton, a wholly-owned subsidiary of Temasek Holdings (Private) Ltd, for the acquisition of the entire equity interest in Sorak Financial Holdings Pte Ltd for about RM4.8 billion.

6 comments:

clan, KL said...

bank negara did a good job there.

as for the local banks, they need to be more careful in such a move.

although the borderlesss market economy provides vast opportunity for banks to merge or acquire, local sentiments must be taken into consideration.

clemence said...

maybe maybank felt it was the right time to compete with others. it was a good plan but not all plans work to our satisfaction.

bank negara decision to halt the plan was wise but the central bank, too, must supervise few acquisitions already in place

Anonymous said...

In the first place, why Maybank need to acquire the bank and why do the Temasek group TSingapore?) want to sell? The irony is that, a lot of movement of cross selling between Malaysian GLC and Temasek Group raised some doubts? Who is behind the deals...KJ?

Well, BNM did the right move.

bujai said...

anon,

we dont know who are behind the deals. all that we know is, BNM acted wisely to save maybank

amoi sentul said...

orang beli bank, kita pun nak beli bank. orang buat JV, kita pun nak buat JV. macam ni lah jadinya kalau tak berapa bijak. orang yang mengaturnya cuma tau nak buat untung tetapi tak kisah kalau maybank terlungkup!

banko, PJ said...

merger and acquisition requires approval from all parties, including the central bank, shareholders and board of directors.

while the government's policy supports such moves as a mean to add strength to a bank's portfolio, it has to be done with caution.

we have seen many mergers and acquisitions fail because of over-zealous implementation.