Maybank turns down Fullerton’s last-minute offer on sale of Indon bank

Malayan Banking Bhd (Maybank) has not accepted the last-minute rebate of S$236.4mil (RM570mil) by Singapore’s Temasek unit Fullerton Financial Holdings Pte Ltd to close the controversial sale of PT Bank Internasional Indonesia (BII).

Fullerton said in a statement that it sent a written offer to Maybank at about 9.45pm on Friday, offering to close the transaction with the rebate.

“However, despite the rebate, Maybank did not accept the offer. We are aware that Kookmin Bank also made an offer,” it said.

This latest twist of events follows more than five months of regulatory and lately, pricing issues, in May­bank’s RM8.8bil purchase of BII.

In the wake of falling world markets, Maybank has not only asked for a reduction in purchase price but also an extension of the deadline to renegotiate for a lower price for BII, whose share price has fallen sharply.

At last Friday’s close, BII’s share price hit 310 rupiah (11 sen), compared with the original agreed purchase price of 510 (18 sen) rupiah per share.

All parties had agreed to close the deal at 2pm on Friday.

However, Fullerton said it received a faxed letter from Maybank at 8.26pm on Wednesday requesting negotiations for a reduction in the purchase price and an extension of the long-stop date (from Sept 26) to Oct 26.

Fullerton and Kookmin then informed Maybank via letters on Thursday evening that they were unable to accede.

Maybank then informed Fullerton in a faxed letter at 11.32pm the same day that Bank Negara’s approval had become conditional on Maybank obtaining an extension to the share sale agreement and a new agreement on the purchase price.

On Friday morning, Fullerton and Kookmin replied to Maybank, confirming they were ready and willing to honour the agreement and they intended to proceed with the agreed closing.

Both Fullerton and Kookmin Bank reserved their rights.

Fullerton and Kookmin waited until 8pm to close but claimed that neither Maybank nor its representatives presented themselves for the closing.