Maybank - Time to Knuckle Down

Summary


MALAYAN BANKING BHD'S (Maybank) acquistion of Bank Internasional Indonesia (BII) at 4.3 times price-to-book value is still difficult for minority shareholders to stomach. MSWG has expressed its grave concerns over, and disapproval of, Maybank's decision to go ahead with the purchase, taking into consideration the steep premium and the timing, set as it was against the backgrop of a global economic crisis.

Even the recent HSBC acquisition of Bank Ekonomi in Indonesia at slightly above four times PBV does not make Maybank's BII deal more palatable.

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Extract


Maybank - Time to Knuckle Down

It was hoped that Maybank had walked out of the deal given the circumstances. Shareholders opposed to the transaction were confi...

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