Malaysia's Maybank Buys Indonesian Bank

KUALA LUMPUR — Malaysia's top lender Maybank said Wednesday it plans to acquire Indonesia's sixth-largest bank, Bank Internasional Indonesia, for a total $2.7 billion as part of aggressive regional expansion.

In a statement to the stock exchange, Maybank said it has agreed to buy Sorak Financial Holdings Pte. Ltd., which owns 56 percent of Bank Internasional, for $1.5 billion. Maybank will then make a tender offer for the remaining 44 percent stake in Bank Internasional for $1.2 billion, it said.

Sorak is 75 percent-owned by Singapore's Temasek Holdings and 25 percent by Kookmin Bank of South Korea.

"The acquisition will transform our growth prospects in Indonesia and is a huge step forward in our strategy to regionalize our operations through investments in selected high growth markets," Maybank said.

Bank Internasional, which has a network of 230 branches and some 700 ATMs, is expected to benefit from a consolidation in Indonesia's overcrowded banking sector, it said.

The deal will help Maybank gain a strong foothold in Indonesia's high growth banking industry and capture the remittance and trade finance products markets, the bank said.

Apart from Indonesia, Maybank has also strengthened its presence in Vietnam. Last week, it announced plans to buy 15 percent of Vietnam's An Binh Bank for 430 million ringgit ($135 million).

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