Maybank Indonesia Says It Scraps Deal to Sell WOM to Reliance
Jakarta. Maybank Indonesia, a local unit of Malaysian banking giant Maybank Group, has scrapped a deal to sell its stake in motorcycle financing unit Wahana Ottomitra Multiartha, or WOM Finance, saying that a certain requirement has not been met by the potential buyer.
As previously reported, the country's 10th largest lender, signed a conditional sales and purchase agreement (CSPA) on Jan. 11 with financial service company Reliance Capital Management to sell its entire 66.55 percent stake at WOM Finance for Rp 282 a share.
The shares takeover was supposed to be completed in the first quarter this year, but it was extended until April 30.
Maybank said in a statement on Friday (05/05) that the CSPA was terminated on Wednesday, as some of the early terms and conditions "had not been satisfactorily met."
"The termination was in accordance with the terms and conditions written within the CSPA," the bank said.
The lender gave no further details on the conditions Reliance had to meet for the acquisition.
Maybank's response came after Reliance's statement from Thursday that the bank performed an unilateral move and had no legal basis to terminate the deal.
The company said it is still willing to complete the transaction.
WOM Finance provides automotive financing for new and secondhand motorcycles, mainly from Japanese brands such as Yamaha, Suzuki and Honda.
According to analysts, the divestment deal would have been good for Reliance as it could strengthen its automotive financing unit Reliance Finance.
Maybank Indonesia's shares closed 1.84 percent lower, Rp 320 a piece, on Friday, while WOM Finance's shares closed 8.92 percent higher at Rp 171 a piece.
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