BNP Paribas is pleased to announce that it has successfully advised Malayan Banking Berhad, known as Maybank, to effectively acquire a majority stake in Bank Internasional Indonesia Tbk (BII) in a deal worth approximately US$1.5 billion, representing the largest cross-border banking M&A deal in Southeast Asia in the last two years. BNP Paribas’ corporate and investment banking division is advising Maybank on this deal.
On 26 March 2008, Maybank, Malaysia’s largest financial services group, announced that it had won a competitive bid process over other major banks, to acquire up to 100% in Sorak Financial Holdings Pte Ltd (Sorak), an investment vehicle which owns approximately 55.7 per cent stake in BII, Indonesia’s sixth-largest bank in terms of assets. Fullerton Financial Holdings Pte Ltd (FFH) owns 75% in Sorak, while the balance 25% is held by Kookmin Bank. Maybank entered into a Share Sale Agreement to purchase up to 100% of Sorak. FFH is a wholly-owned subsidiary of Temasek Holdings of Singapore. Maybank will effectively become the controlling shareholder of BII upon completion of this transaction. The transaction is subject to various conditions including approval from Bank Indonesia, Maybank Shareholders and other regulatory approvals / consents.
Commenting on the deal, Christian de Charnace, Head of BNP Paribas Corporate Finance Asia Pacific, said, “It is a great honour to take on the advisory role for the deal of this size and significance, both for our clients and for the industry. It will help the Bank leapfrog our corporate advisory ranking in the region, demonstrating our well-established presence and solid relationship with our clients.”
Mr. de Charnace added that the deal was also BNP Paribas’ largest M&A transaction that it had been mandated for in Southeast Asia for the last three years. This deal will put BNP Paribas into the top 5 ranking for banking-related M&A deals in the region.
Chong Lee Tan, Head of Investment Banking, BNP Paribas Southeast Asia, “Maybank was elected the successful buyer for BII amidst a highly competitive process, due to the strong bid submitted and support provided by BNP Paribas based on our strong relationship with Temasek, which was key to positioning Maybank favorably.”
Mr. Tan continued, “Maybank is a core client where we have cross product coverage. We have assisted Maybank in all aspects of this deal from origination, early pre-emptive discussions with Temasek prior to the commencement of the competitive process, through to valuation, bidding strategy and negotiations. This is a highly strategic and significant transaction for Maybank, the largest acquisition for them to date, as such, both BNP Paribas, and our client Maybank, are very pleased with this outcome, which proves our strong presence in the region in providing cross-border and local expertise to large corporates across all deal sizes. “
Corporate Communications Manager,
BNP Paribas, North & East Asia
Tel: +852 2909 8847