Maybank’s Indonesian arm aborts sale of consumer financing firm

MAYBank building in Kuala Lumpur.

KUALA LUMPUR: Maybank Indonesia has aborted the sale of its 68.55% equity interest in Jakarta-listed PT Wahana Ottomitra Multiartha TBK (WOM Finance), which provides financing for motorcycles.

In a filing with Bursa Malaysia on Thursday, Malayan Banking Bhd (Maybank) said the proposed disposal to PT Reliance Capital Management for 673.77 billion rupiah (RM218.93mil) was terminated as of May 3.

It noted that certain conditions precedent to the share purchase agreement, which were scheduled to be satisfied by April 30, had not been met.

In the earlier announcement, Maybank said it expected the proposed disposal to be completed by the first quarter of this year.

With the termination, WOM Finance will continue to be a subsidiary of Maybank Indonesia.

Maybank said the proposed disposal and its termination were not expected to have any material effect on the group’s earnings per share and net assets per share for the financial year ending Dec 31, 2017.

Maybank Indonesia had sought the proposed disposal as part of its strategic initiative to maximise its capital use and streamline its customer segmentation, which would optimise its resources.