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Thursday, March 27, 2008

Maybank Foray into Indonesia and Bursa Malaysia

The bank's shares fell on news that it is spending RM4.8b cash to acquire a bank in Indonesia for 4.6times the book value.

This appears to be a very adventurous venture for a bank that essentially depends on the Malaysian government for most of its business.
It is interesting to note that the seller Fullerton Financial Holdings is part of Temasek, the Singapore government body.

I do not know anything about PT Bank Internasional Indonesia Tbk so I would only like to comment about the Jakarta Stock Exchange procedures that require Maybank to undertake the same offer to minority share-holders.

This is good for transparency principles but in Malaysia, there were cases where majority shareholders sold off their stakes and left the minority in the lurch.So all the talk about improving Bursa Malaysia like merging the Main and Second Boards is pure crap when minority share-holders are taken for a ride.

Bursa Malaysia also now has a minimum RM40 brokerage for trades of any value so that screws the small-timer even more.

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