Monday, September 29, 2008

The new MoF's first big test



update, 6pm: Daim involved? Read the poser in The Edge's Financial Daily here.

Original Posting:
First, read this story.
Please note that the PT Bank Internasional Indonesia deal is not the first time Temasek is at the heart of a corporate deal that has cost us a fortune and left Malaysia's corporate boys and authorities red-faced. Why did the MoF agree then to let Maybank pay Temasek so much for their stake in BII?

That, however, is just my own narrow concern. For new Finance Minister Najib Razak, Fullerton's disclosure to the Press and what Maybank and the Bank Negara would do next would bear larger, and perhaps more dreadful, implications.

Maybank's top execs, I was told, held a series of meetings over the weekend to discuss the bank's options. It's likely that the bank would choose to walk out of the deal. The goal post had been moved, and both the Indonesian authorities and Temasek have been playing hardball with the bank.

But while dropping out may be in the best interest of the bank and the country's financial sector at large, the fear is that this would trigger retaliation by Indonesian authorities affecting other Malaysian investments in the republic. Temasek is not going to be happy, either. If Maybank walks out of this deal, it won't be easy to find a buyer, especially given the mess in the US right now.

Najib, the new Minister of Finance, must ensure that a decision is taken in haste and without further ado. Once that's settled, he must move on to the next task and get the relevant authorities -- the MoF ll, the Bank Negara, and the previous CEO of Maybank, among others -- to explain how and why the bid for BII was made (is it true that it was RM2 billion overpriced?) and what went wrong.

Back then, in the case of Pantai Holdings, everybody got off scot-free, here..

This time, with a new MoF, heads must roll ...

55 comments:

Omong said...

Dear Ahirudin

Selamat Hari Raya.

When you deal with this known entity, you need to be EXTRA careful and always read all the fine print.

Fourth Floor Fool said...

Since you brought up Pantai Holdings, can anyone explain how, from the 49% the foreigners own, Khazanah now owns 100%?
See the Khazanah corporate structure at http://www.khazanah.com.my/docs/investStruc_public%2031%2007%2008.pdf

Does that mean Khazanah bought back a further 49% from Parkway? If so, at what price and when?
Why are rakyat not informed of the wheelings and dealings in Khazanah?

Anonymous said...

If MOF and Bank Negara had been forthcoming in reports on our country's financial position I doubt we would have been that shocked that our inflation rate has jumped to a 27 year high.Methinks we can do without this kind of high..stock market high maybe palatable but this?
All these years we have been told we are not affected by many financial turbulences externally whilst other more established economies reeled from the effects;but no Malaysia is immune ?
Well now reality bites and most Malaysians are now suffering except those who saw thw writing on the wall and stashed away their hard earned money.Where did it leave those like us who had to struggle - one income families even no income pensioned folks and the urban and rural poor ?
And during all this who did we entrust the economy of our country to and did they perform as they should have?Well answers we do have now haven't we !

Sotired

Anonymous said...

Heads must roll? You have to be kidding. After all, it's public money, so who cares? When did we ever get a good deal when it comes to dealing with Singapore anyway? That's why Singapore loves us. Forever the generous loser due to total incompetence. Now Indonesia also wants a piece of the action.

Alibaba

eugene said...

This news is not new to us, we Malaysian will once a while be inundated with such a farce.

And the best part is nobody shall be held accountable, how very nice.

AimnGL said...

In Bolehland, everybody got off scot-free, just look at Lingam scandal, what happen now? everything is swept under carpet.

MYblog said...

Sure he will make a decision and I can bet you it will be in favour of Temasek. Why not add to the kitty, another commission for an omission.

Mr. Smith said...

Ha, did you say head must roll?
This does not happen in Malaysia. Most often they are promoted with a title to boot.
Just take a look at the Auditor General Reports and tell me how many heads have rolled?
By right many civil servants and their political master would be walking without heads had the government taken appropriate actions.
In fact, the present MOF's head should have rolled long ago for his many blunders and bungles in the MOD.

Anonymous said...

In Pantai deal, the Health Minister then was Chua Soi Lek and I am sure he would be able to tell who was involved and instructions given. Most of you would have guessed that influential person is close to Spore and was educated there. And obviously Khazanah has to listen to the 4th floor boys under him.
As for this BII deal, Maybank should walk away unless the new FM cannot tell this influential boy off. A bad deal always smelt of shits somewhere.
BNM done the right thing to reject the deal, only now we need to see if the CEO is equally adapt at that too.

Anonymous said...

In Pantai deal, the Health Minister then was Chua Soi Lek and I am sure he would be able to tell who was involved and instructions given. Most of you would have guessed that influential person is close to Spore and was educated there. And obviously Khazanah has to listen to the 4th floor boys under him.
As for this BII deal, Maybank should walk away unless the new FM cannot tell this influential boy off. A bad deal always smelt of shits somewhere.
BNM done the right thing to reject the deal, only now we need to see if the CEO is equally adapt at that too.

Observer Malaysia

kchan said...

something like this happened always happened in our country and the usual answer was always "Semuanya ok!".

this time round, the same resolution doesn't apply as it involves international relationship and diplomacy consideration.

whatever they do, make sure somebody responsible for this matter without digging money out of the peoples' pocket.


kchan

Anonymous said...

Do you think Indonesia will allow Malaysian bank(s)and conglomorates to control their financial system and economy? Astro got burned by a few hundred millions and the latest will be Maybank. We have also been accused of stealing their songs. Their press has never been friendly to us.

Anonymous said...

Pantai deal was surely the works of the 4th floor boys. no wonder, there ar people in town who can brag of being unemployed.
I dont know about this deal but it smells Maybank is being milked big time. Thought when Quek managed to squeeze Temasek for 3 times book value for a bank in Hong Kong, that would be tops. Now, Maybank is paying 4 to 6 timss book value for banking stakes in Inodnesia, Pakistan and Vietnam. To whom the bells toll, Rocky? Where's the beef (commission) going, Jose?


Screwed Again

Anonymous said...

Maybank will be first Domino to fall leading to the failure of our banks. Who cares about Maybank? Their (UMNORATS) money is in the Caymans, or UBS or wherever it is looters hide their money nowadays.

This deal is CLEARLY leading to Maybank's ruin and the millions of poor sods who keep their hard-earned money there . Kalau Najib masih tak nampak lagi, orang lain tak berani nak push for a stop to this/ transparency...then I can assure you, this is the start of the financial ruin of Malaysia. Many analysts have questioned the extremely high premium paid esp in these uncertain times. Payback will be a long time coming, that is IF it does, given the gloomy financial scenario worldwide.

Politics in a mess, economy all but dead, financial sector collapse. All ripe factors for a takeover dontcha think?

THOSE INVOLVED SHOULD BE PUT BEFORE A FIRING SQUAD FOR TREASON LIKE IN CHINA.

SADLY, THAT IS THE BEST THING CHINA HAS TO OFFER THAT IS NOT EXPORTED. WE ONLY GET THAT DAMN MELAMINE AND LEAD INFUSED FOOD.

incognito

Anonymous said...

The reason why this shit goes unabated is that NO ONE IS EVER HELD ACCOUNTABLE. NO ONE HAS EVER BENN CHARGED IN ANY CASE WHERE TAXPAYERS' MONIES/PUBLIC INTERESTS ARE LOST/ABUSED.SO THEY DO IT AGAIN AND AGAIN. NAK TAKUT APA?

HEADS NEVER ROLL. NEVER WILL. (you really expect Najib to do that...hahahahaha...funny man, DREAM ON)

OUR POLITICIANS AND CORPORATE BIGWIGS HAVE NO HONOR AND SCRUPLES.

We will just make noise then move on to the next topic. No one pursues it to the end.

No one has the balls to.

ANONYMITE

Anonymous said...

You Want answers ? Or the truth ?

You will get a set of answers. Answers that leads you into another sets of questions, and so forth.

The truth ? Then you must be dreaming ! Not in Malaysia !

The word integrity has lost its meaning as far as our political scenario is concern, and this has rubbed off to the Corporate scene somewhat, especially when the honchos are appointed by the politicians.

You want head to roll ? This is another thinking in futility, may be, they will get promoted instead , with renumeration packages improved a few fold ?!

S. Radhakrishnan said...

The silence of Amirsham in this matter has been, well, deafening.

Maybank, being the institutional force that it is in Malaysia should not have rushed headlong into purchasing this miniscule Indonesian banks as the headwinds in the financial industry had been quite apparent for sometime now.

Hindsight is 20/20, but if only Maybank had been patient, it could have had its choice of pickings among the carcasses in the aftermath of the financial tsunami

Instead we have proven yet again that we are suckers for Singaporeans' cunningness

Sukj said...

Salam Broder,

"Selamat hari raya aidil fitri maaf zahir & batin"

Old Fart said...

This is what happens when the primary motivator behind a corporate deal is, what the deal makers end up getting.

One has to be totally naieve to think that Maybank was prepared to pay an extra RM2 billion for nothing. One has to be naieve to think that Temasek does not know and does not involve itself in transactions with its neighbours where the primary motivator for the deal is the private and corrupt money that will flow through to the deal makers. Maybe Temasek's own officials may not be in receipt of any kickbacks. But the question to ask is if Temasek itself will be prepared to pay so called "consultation fees" or "commissions" that will guided by the very people they may be talking to or those authorising these deals.

I have to believe that we do not have dropouts and silly idiots who might have graduated out of UiTM running Maybank.

Why on earth agree to pay more when you could have paid less?

No wonder people abroad get both excited about buying from as well as selling to Malaysia especially when government linked companies are concerned.

CP said...

Temasek’s decision to sell the BII stake is in line with the policy of Bank Indonesia, the central bank, that prohibits a single entity from owning a controlling stake in more than one Indonesian bank by the end of 2010. In addition to BII, Temasek also owns a controlling stake in Bank Danamon Indonesia, a bank bigger than BII in terms of assets.

To comply with this policy, Temasek announced in December last year that it was evaluating a merger option between Danamon and BII. It said that if the merger did not push through, it would be looking to sell BII instead.

Several parties did express an interest in acquiring BII and Temasek eventually shortlisted Maybank, HSBC and Bank of China.

Maybank took a huge step towards expanding its regional franchise by acquiring a controlling stake in Bank Internasional Indonesia (BII). In doing so, Maybank paid what analysts described as a rich price to beat other rival bidders for an opportunity to gain a major foothold in Indonesia, where it has been scouting for bigger opportunities for about three years.

On March 26, Maybank entered into a share sale agreement to acquire up to 100% of Sorak Financial Holdings for a total cash consideration of 13.9 trillion rupiah (US$1.5 billion). Sorak owns about 55.7% of the issued and paid-up capital of BII.

Under the transaction, Maybank is acquiring a 75% stake in Sorak from Fullerton Financial Holdings, a wholly-owned subsidiary of Temasek Holdings, for about 10.4 trillion rupiah and the remaining 25% from Kookmin Bank for 3.5 trillion rupiah. Maybank is paying for the deal in cash and it will be financed through internally generated funds and/or borrowings.

As a result of the transaction, Maybank will also be making a tender offer for the remaining 44.3% shares held by the remaining shareholders of BII. The total amount involved in the tender offer is about 11 trillion rupiah, bringing the total value of the potential acquisition to 24.9 trillion rupiah, or about 8.6 billion ringgit (US$2.8 billion).

The acquisition price is equivalent to about 4.7x price-to-book value, which analysts described as higher than expected. “Recent transactions averaged 2.5x price-to-book value and we did not expect it to go beyond 3x,” says Citi analysts Julian Chua and Robert Kong. “At present, the sector leaders such as Bank Central Asia and Bank Rakyat Indonesia, which have far superior return on equities, trade at less than 4x.”

Chua and Kong say BII focusses on high net worth individuals with a small branch network in Indonesia’s biggest cities. This leaves the bank at a disadvantage when competing in the mortgage segment where competition is intense, they point out.


BII also has high exposure to the risky motorcycle financing loans – about 24% of the total loans, according to the two Citi analysts. Large provisioning of 730 billion rupiah with its motorcycle financing subsidiary, WOM Finance, in fiscal year 2007 fully covered its provision shortfall that arose from bringing its finance subsidiary’s loan classification in line with the banking standards.

But it was not really a surprise that BII generated this kind of valuation. For one thing, there was a competitive tension among the bidders as they are eager for this kind of asset. This is probably the last asset of this scale that will be available in Indonesia for a while and this scarcity value really helped drive up the price. The pricing also reflects the evolution of the banking sector in Indonesia, which has become very attractive and the bidders recognize its tremendous potential.

In conclusion, the transacted price is based on willing buyer willing seller basis at that time.

Anonymous said...

The real issue now is IF the deal is called off, will Maybank get back their deposit which has been paid to Fullerton?

Knowing how the Singaporeans operate at kiasu levels, this may go to the Courts. But BNM has perhaps thrown Maybank a lifeline.

The fact that any purchase of a Bank outside Malaysia (or even inside Malaysia) by a Malaysian Commercial Bank requires the approval of BNM is well known.

Without such approval, the transaction is not valid and Fullerton must refund the RM hundred millions Deposit back to Maybank.

The fact that BNM has set conditions means there is no approval yet. But Fullerton can come back (and they have) and make a reduced price offer (as per BNM's requirement)

The question is what if Maybank does not agree to the lower price? In such event can Fullerton claim to have met BNM's conditional approval and then keep the deposit money (if Maybank still does not agree to the lower price)?

What if BNM does not agree to the lower price offered by Fullerton? Who decides on the final price - Maybank or BNM?

Before the blood really starts flowing on this one here is what BNM can do to save Maybank's hide : impose a cut off date on the whole deal (say 14 calendar days - not working days) and then if not concluded, just say Application Rejected.

Maybank can then legally walk away and Fullerton must legally return the deposit back to Maybank.

Also note that the new offer by Fullerton (even if it cleverly has incorporated the old offer price) is still a new offer. It negates the old offer. The old offer is null and void.

Fullerton cannot make a new offer but still try to snooker Maybank by cleverly including details of the old offer inside the new offer. You cant have your cake and eat it to. This is typical Singapore kiasu.

BNM must stop being wishy washy. Just say a flat 'NO' and save a few hundred million of our Ringgits.

Dato Najib, please step up to the plate. This is your first bat (Ini baseball phrase lah).

Anonymous said...

Maybank has changed tremendously - not all for the better. The bank is seeking to expand aggressively in the region at a time when it is critically short of capable and experienced staff.

There has been an ethnic cleansing of sorts in Maybank beginning the late 90s until now. Many experienced non Malay staff have left the company - not always of free choice.

The middle management of the bank is largely monolingual with very poor English skills.

What is even more detrimental is that over the past 10 years, the Bank has changed its back room operations. There is too much division of skills and functions.

For example credit processing is done by officers who may not meet the Client. Managers may meet Clients but not process their applications. This causes delays and does not serve the lients best.

More significantly the Bank's pool of experienced staff with an all round grasp of banking (credit marketing, credit processing, legal documentation and administration) has decreased tremendously. Its officers now operate in boxes.

Loan growth at Maybank is below target.

Other banks like Public Bank - which is the most succesful bank in Malaysia - have stuck to the established system of banking (pioneered by Maybank decades ago).

soldier of fortune said...

Temasek is fronting 4 Daim. Before, heads roll in Maybank, it should role in KN. Why didint the KN board object? Why did Zety, subsequently quit KN? Following, quiting from KN, why did Zety's BNM reject the deal? Didnt Zety at KN level inform the board, that the deal cant go through? Is that why she quit KN? Who overode her at KN? More importantly boss, how bout Maybanks purchase of the Pakistan bank?

Anonymous said...

Rocky,

Khazanah have not look into putting things right in their investment in Time Dot Com and Northern Utility Resources(NUR)and they are moving into foreign land and losing hundreds of miilion.

Why is Khazanah formed?

Khazanah have a responsibility to take care of Malaysian money and the people of Malaysia.

Shadow

Anonymous said...

"I'm very surprised to see the price tag at about 4.6 times 2007 price-to-book value even for a controlling stake," said Joshua Tanja, a UBS analyst in Jakarta.

"I never realized someone was really that eager to buy into the Indonesian banks," he added.

Maybank agreed to buy a 42 percent stake in BII from Singapore state investor Temasek Holdings for 10.4 trillion rupiah, or $1.13 billion, while it said it will also acquire almost 14 percent from Kookmin for 3.5 trillion rupiah.

Well Bro, if the BII shares were so hot, did anyone ask why Temasek would want to sell off such a hot asset to Maybank? Or was this a 'Christmas come early' situation for Temasek?

They were just overjoyed that the kampong boys next door were willing to pay 4.6 times market price for a bank they were desperately trying to get rid of!

We should ask who was the Financial Advisor advising Maybank about this fantastic buy? We should also ask if this Financial Advisor was also Singaporean? Or at least well known to Temasek? (Yes I am exploring the conflict of interest angle).

Bro, usually when people get snookered like this (ie pay 4.6 times market price for a bank that other people want to dump in the bin) it means someone is holding someone else by the nuts.

Who is holding whose nuts in this case?

Or is it more mundane Bro? Was someone with authority or connections just paid off to recommend this as a good buy?

Anonymous said...

soldier of fortune said...
Why did Zety, subsequently quit KN? Following, quiting from KN, why did Zety's BNM reject the deal? Didnt Zety at KN level inform the board, that the deal cant go through? Is that why she quit KN? Who overode her at KN? More importantly boss, how bout Maybanks purchase of the Pakistan bank?

SOF, good point. You are coming closer to the truth.

Zety quit the Khazanah Board because she was being ignored by AMOK and his Boss Nor Mohd Yakcop.

Altho the PM is Chairman of Khazanah, he is yet to be fully aware of this fact.

The real person running Khazanah is Nor Mohd Yakcop with AMOK assisting. And the real person running Nor Mohd Yakcop is of course the Singapore educated SIL.

Now you know where all roads lead.

Anonymous said...

Salam Aidil Fitri dari Kekanda kpd Saiful yg dikasihi :

Jika terlanjur yg Zahirnya,
Jika terguris yg Merasanya,
Jika terkasar Caranya,
Maafkan pada Zahir & Batinnya
Selamat Hari Raya

Kekanda

Anonymous said...

Guys,

Hold your horses before blaming khazanah. Nak criticise pun, get your facts rightlah. Khazanah got nothing to do with Maybank. Maybank is under PNB (PNB is the single largest shareholder). So why blame khzanah, blame the board of maybank and the then CEO Amirsham. These are the guys reponsible for such a crappy deal. Maybank is advised by BNP Paribas and Aseambankers.

Anonymous said...

radhakrishnan

nothing to do with S'pore cunningnes. there is morethan meet the eyes for all these deals.
remember at one time, everybody laughs at "S'pore premium" ie. premium in which S'pore is willing to pay. A classic would be the acquisition of dao heng bank by DBS which paid a whopping 3.0 times book value.
Hey, Malaysia Boleh now coz MBB, under the influence of 4th floor boys, is willing to pay 4.6 times book value and close to 6 times for a stake in a Pakistani bank and ( cant even bother to remember on the) inflated price for another stake in a Vietnam Bank.
You think the Board of MBB is stupid. No, there's more than meet the eyes. This is massive plundering before the end game of Badawi and his 4th floor boys.

Screwed Again

Mr Bojangles said...

...and here is I trying to buy a vehicle to carry my sorry ass around. Total cost less than 50000 ringgit. And the local perodua outfit, with all its world class standards of diligence and financial control, wouldn't accept my 6000 ringgit check. They wanted me to run to the packed harimau-logoed bank on this hot afternoon on the eve of Raya for the cash or a bank draft.

Poor me.

Neither having 4th floor connections or being a croni to boot.

Then the whole deal would be done without me leaving the comfort of my living room. And maybe a sweetener thrown in in the form of a two legged non-melamine tainted chinese product. Which being sedekah, I would be forced to accept. After all that is the limit of what corporate responsibility means to the head honchos in bolehland corporations, isn't it.

Take care of the rich and famous--never mind if most of them are crooks and parasites. The rest of you hardworking, tax paying serfs, sila ambil nombor and beg.

My Raison D'etre said...

Hiya Bro,

Something I picked up from The Edge that makes for some interesting reading on the Maybank-BII saga.

God bless.

Click here to visit my Blog

Anonymous said...

ahhhhh .. now u talking bro. finally some amount (oklah) of indepth analysis. thats the way to go. also good to play safe when the shit hits the fan and talk about business issues. no point talking about ISA now is there? too many people already talking about it. plus its fasting month .. so religious people must be careful of what they say. hang in bro ...
*floyd*

rams609 said...

Bro Rocky,

Selamat Hari Raya to you and Family.

I've made my comments on this issue in various blogs that BII is NOT one of the top banks in Indonesia. Temasek thought it was when they bought into it, only to realize there were somewhat conned. And Singapore being Singapore knows only Malaysia can be fooled over and over again.

And for the country's top bank can be so blind over the price of BII beats me. But unless there is some hanky panky stuff going on. BII is another submarine, this time from Indonesia but owned by Singapore.

We do not give out commissions for the deal, but how about a portion being re-routed back into the pockets of the
so-called 'negotiators'? Sounds unfamiliar? Of course not! This has been going on for decades especially in Indonesia, and our top executives have picked up from them pretty fast. Only that our executives are much more greedy than the former!

I say track the trail back on who's who giving orders on this one.

I say FORGET about BII. Maybank can never turn the bank around and make money, otherwise the bigger Indonesian banks will already have bought into it!

Malaysia has to put her foot down without worrying the after effects of moving away from this 'silly' deal. But those Maybank negotiators MUST be pulled up to explain, including the person who authorized to go ahead for the buyout. If they are proven to be at fault they must be charged. I'm sure that is not that difficult to find out.

No to BII. Period!

Unless we Malaysia wants to continue to be a laughing stock of the foreign business community.

We should put this to a stop. No more discussions after this as this is really old story.

Malaysia Boleh if only there's $$$$$$$for me! Compre?

ChengHo said...

after hari raya head must roll under the name of accountibility and responsibility ,this is Najib big test .

Anonymous said...

AA,
My GOD, you really have an axe to grind with Singapore. Mamak must have influenced your generation big time. He has a chip because he was badly treated by a Singapore taxi driver during his days in Uni. (A well informed person like you should know that.) To vent his personal grudge, his mamak character selfishly turn the naive malaysian people against Singapore by frequently peddling half truths and untruths about Singapore taking advantage of Bodohland. Now, one advice for all you misguided malaysian - Unless you start to realise that all your problems are due to the imcompetence of malaysain in general (and this is due to your policies: be it education,, economic, etc etc...and most of damage was done during the mamak's 22 years), rather than blame your neighbours, you will always be behind Singapore. Your politicians bash Singapore to win your naive votes. Do not be used by them. A better educated guy like you should know the difference, unless you are actually one of the undercover umno mamak faction.
One more thing, mamak is not that great a leader. Malaysia is so well endowed, any PM worth his salt should have brought it to a prosperity level as good as even Australia. Mamak has 22 years and what has he achieved (compared to Singapore, HK, South Korea). Twin Towers???

woke up

MZ said...

no heads will roll.
invizibel hands were there.

Chow Kit Cowboy said...

Don't blame Temasek or Kookmin.

Maybank didn't do its homework or negotiated badly. It then signed on the dotted line and when everybody complained that it was a bad deal, it looked for an excuse to get out.

Come on, the bank's and country's image and reputation is at stake. Will we honour our words and obligations? Will our words be worth anything in the international markets from now on?

We are solely to blame so let us not blame the sellers or the Indonesian authorities.

Ask Amirsham and his Board why they agreed to the price and signed on the dotted line? And was this decision approved by their shareholders at a general meeting?
Who were their financial advisers?

Don't forget. With the current poor market conditions, Temasek and Kookmin would have suffered losses too and they might sue for this loss for non-completion of the deal.

So after losing those piles of rocks, we now lose money big time as well to the little red dot. Why are we losers all the time?

The Malaysian Investor said...

We shouldn't give Temasek too much credit in supposedly outwitting Maybank.

Maybank was the highest bidder among the three shorlisted by Temasek.

The question is why is Maybank willing to pay so much for BII?

Bukan Temasek yang pandai, tapi Maybank yang bodoh.

If somebody offers to pay you RM1million for your RM200,000 house, do you tell him to fuck off?

Of course not.

But is Maybank really "bodoh"?

That is another question.

Anonymous said...

Ya - heads(top executivess) will roll!

More like rolling along in the game of musical chairs!

Remember UEM? Remember Renong?

These people ( best-of-the-worst, second-best) will never learn. After all, they get to where they r today bcoz of who they know NOT bcoz of what they know.

Moreover, there is always a sugar daddy (BN Govt) to come to the rescue.

When the hoo-haas r forgotten, they continue onwards to head another GLCs, or buy some PLCs with money they 'took'.

Remember Halim Saad with the RM 3Billions buy-back option for the UEM shares? Remember the loan to buy the Phillipine National Steel corp. The loan was passed back to the Joe M'sian, while the BN govt & Halim pretended nothing happened.

Tsk --- not nice to dig so deep into the shit during this holy month.

gwlnet

Anonymous said...

With all of this "sandiwara" ... Maybank has succeed to show to the world that Maybank is the example of our laughing stock ....

So, who will interest to deal with "clown" and "flip-flop" like us ...

Steve Chong

Anonymous said...

Yes Bro, the new Minister must act swiftly. Najib would be able to use his good offices to initiate a G-to-G talks on the deal. Indonesia and Malaysia need to bail out each other here. Don't think Maybank CEO is trying to tell the Indonesian authorities how to do their job, he's just seeking a fair treatment. You can't move the goal post after the game has started, man.

What's more important is to ensure that Maybank is safe and Malaysia's financial sector does not suffer. At the same time, we must ensure that the Indonesians are happy and Singapore's Temasek walks away happy. I believe a win-win-win situation is possible.

More importantly, DS Najib must call up the former CEO of Maybank and find out the rationale behind the purchase of BII, the justications of the pricing, the bank's long-term goals in Indonesia and the region, etc.

Because the markets have been talking about kickbacks and commissions, DSN needs to get to the bottom of things.

Let's not point fingers without first finding out what actually is the deal.

TI - Transparency Individual

Maybank ATM user said...

Forget the Singaporeans and the Indonesians.

The people who have to answer for this are:

1. Amirsham
2. Mat Nor Yakcop
3. Board of directors
4. Major shareholders
5. Even Bank Negara

In case anyone forgot, all these people gave their seal of approval early on.

What happened? How come last time ok?

artchan said...

heads must roll?

you joking or what? Since when has the govt of AAB or Najib can take action on their own. Scratching each others back ia an art form in BN.

The disease is not curable. Heads must roll...?

Yes..rolling on the floor laughing my ass off...

Anonymous said...

Yeah,,,Thats goods news,,Biar koyak Malaysia Balance Sheet,,,Lagi cepat lingkup lagi bagus,,,!!!!

Kalu di US,,banyak bank yang d bailout,,ta'kan di Malaysia ta'bole,,!!! Afterall the rakyat money,,!!!

Kenapa ta'salahkan DSAI,,!!!???

Bilalah BODOWI nak bunoh diri,,???Now dia bagi kat Najis,,bijak-bijak,,Mamat tu nya nama memang tepat sekali,,!!!!


-BODOLAGI-

Anonymous said...

The question is why is Maybank willing to pay so much for BII?

Bukan Temasek yang pandai, tapi Maybank yang bodoh.
----
You are absolutely right ...

Please don't blame the other for all bad thing made by us ..

Don't to be a stupid man with no credibility to the market ...

Mamathir

Patriot Selatan said...

Rocky... bila lagi nak belajar ni.. singapore will never make a deal based on 'kawan-kawan'. they have calculated everything to their favor and the maximum lost to the other party... aku dah cakap jangan deal aja dengan diorang... mind our own business..

Anonymous said...

u mean win win win like the batu putih trial??win 2 stones??..heh

Knights Templar said...

Heads Must Roll ? Silap silap kena jual Lock Stock , Lemang dan Doloi .Wishful thinking i must say Rock.But then again , you being you... one never knows!

Anonymous said...

The last paragraph in the Edge's story confirmed that Daim has made his pile. Maybank is now the sucker ... Wali Kota

Anonymous said...

yep, there is no doubt that freaking Daim was involved in the dirty deal. The guy is the chief crook along with cedek and we should hang these guys real soon!

Southener said...

BOO! hehehe
It's your bogeyman from the south.
Pick up your kriss and defend your kampung.
Hahaha
You people are simply predictable or should I say predictably simple.

Anonymous said...

Lets make more than noise people. It is up to us now to take charge of our own affairs. Get more involved on what's going on on the ground and contribute physically as well as continuing moral and vocal support to the reformation of OUR country.

Fed up

CP said...

http://www.bloomberg.com/apps/news?pid=20601080&sid=aTHFJIhjSLV4&refer=asia

Maybank to Buy Indonesian Bank as Temasek Renews Bid (Update2)

By Soraya Permatasari and Dinakar Sethuraman

Sept. 30 (Bloomberg) -- Malayan Banking Bhd., which missed the deadline last week on a $2.7 billion takeover of an Indonesian bank, will proceed with the purchase after Temasek Holdings Pte and Kookmin Bank ``renewed'' the discounted offer.

Maybank, as Malaysia's biggest bank by assets is known, plans to complete the acquisition of PT Bank Internasional Indonesia by today after Temasek and Kookmin renewed the offer of a 15 percent rebate on their stake, equivalent to S$315.2 million ($220 million), Maybank said in a stock exchange statement. The amount is similar to a revised offer on Sept. 26.

Maybank will buy PT Bank Internasional Indonesia to expand its network beyond the Malaysian market. The announcement ends three months of what Maybank said were ``twists and turns'' for the deal, including a change of takeover rules in Indonesia and two rounds of opposition from the Malaysian central bank.

``A price renegotiation is not impossible,'' Keith Wee, an analyst at OSK Research Sdn. in Kuala Lumpur, said in a Sept. 29 report. ``The wide disparity in valuation pricing of the tender offer for Bank Internasional and the current average valuations of Indonesian banking stocks could be a stumbling block.''

`Implicit Price'

The ``implicit price'' payable to Temasek and Kookmin, who together hold a controlling interest of about 55.6 percent, is 433 Indonesian rupiah a share, the Maybank statement said. The remaining shareholders will receive 510 rupiah-a-share, it said.

``Both offers were conditional on Maybank making a tender offer at 510 rupiah per share for the balance of PT Bank Internasional Indonesia,'' Temasek's wholly-owned unit Fullerton Financial Holdings said in a statement today. ``These offers were made in the interest of the minority investors in BII.''

Maybank missed the Sept. 26 deadline to close the transaction after the country's central bank blocked the deal, raising concerns that the price is too high amid the global credit crunch. Maybank's offer values Bank Internasional at 4.7 times book value, compared with the average 1.9 times of Indonesian banks at current prices.

Temasek had offered a discount of $236.4 million to Maybank since it missed the deadline on Sept. 26. Temasek, Singapore's state-owned investment company, said Sept. 27 its original and revised offers weren't accepted by Maybank. Kookmin also made a similar offer at the time.

`Intensive Process'

``It has been an intensive process to bring this transaction to a close,'' Maybank's Chief Executive Officer Abdul Wahid Omar said in an e-mailed statement today. ``Moving forward, our focus will be on making good our investment in BII and working with BII's current management to grow the bank despite the very challenging economic environment globally.''

The rebate exceeded the 480 million ringgit ($140 million) deposit Maybank could have lost by not closing the transaction by the Sept. 26 deadline. Kookmin, South Korea's biggest bank, and Temasek jointly own the controlling stake in the Indonesian bank.

Maybank said last week the Malaysian central bank ordered the company to reduce the price for the acquisition of Bank Internasional or scrap the deal, one day before the agreement expired, the second time it blocked the deal.

``We expect Maybank's valuations to remain stressed at current levels,'' said Sue Lin Lim, an analyst at HwangDBS Vickers Research Sdn., who rates the stock ``fully valued'' at a 12-month price target of 7 ringgit.

Global bank stocks have slumped 33 percent this year, making Maybank's offer of 4.7 times book value seem expensive, and Malaysia's central bank cited the ``global financial turmoil'' when it demanded changes to the deal, according to Maybank last week. Bank Internasional shares posted a record decline on Sept. 26.

The price multiple is also twice what Indonesian banks were trading at when the offer was first made in March.

To contact the reporter on this story: Soraya Permatasari in Kuala Lumpur at soraya@bloomberg.net; Dinakar Sethuraman in Singapore at +65- dinakar@bloomberg.net;

Last Updated: September 30, 2008 10:47 EDT

Anonymous said...

Brother,

I heard Amirsham was rewarded with the post of Minister because of this BII deal. Guess who became richer by RM1 billion? Its Khairy Jamaluddin!

Umah said...

Khazanah is a sovereign wealth fund like the Dubai and Singapore's Temasek. They have a lot of secrecy and no transparency. Take action & call your local MP to demand more transparency.

Umah