Maybank subsidiary to shed its 68.55% stake in WOM Finance
Malayan Banking (Maybank)'s subsidiary Maybank Indonesia is to sell its entire 68.55% stake in WOM Finance to PT Reliance Capital Management for IDR673.77bn ($51m), as part of Maybank's strategy to maximise capital and streamline the business.

KUALA LUMPUR: Malayan Banking Bhd (Maybank) is planning to dispose its entire 68.55% stake in WOM Finance to PT Reliance Capital Management (RCM) for an indicative price of 673.77 billion rupiah (approximately RM229.08mil) cash consideration.



In a filing with Bursa Malaysia, Maybank said its subsidiary Maybank Indonesia had on Jan 11 entered into a conditional shares purchase agreement with RCM for the proposed disposal of Maybank Indonesia’s entire 68.55% stake in WOM Finance.



RCM is a limited liability company incorporated under Indonesian Law and has subsidiaries that provide financial services, including financial services in investment (securities and asset management), protection (general, health, life, and sharia insurance) and financing (multi-finance, banking, and venture capital).



Maybank said the proposed disposal involved the sale of Maybank Indonesia’s entire equity interest in WOM Finance to RCM for a total cash consideration of approximately 673.77 billion rupiah, plus the difference between the book value of WOM Finance as set out in the audited accounts of WOM Finance for the financial year ended Dec 31, 2016 (FY16) and FY15 in proportion to Maybank Indonesia’s 68.55% equity interest in WOM Finance.



“The completion of the proposed disposal is expected to occur by the first quarter of 2017, upon the conditions precedent of the seller and buyer being fulfilled as prescribed in the CSPA.



WOM Finance is incorporated in Indonesia and listed on the Indonesia Stock Exchange. WOM Finance provides financing for new and used motorcycles, with the majority of consumer financing granted for well-established motorcycle brands.



“The proposed disposal is undertaken as part of Maybank Indonesia’s strategic initiative to maximise its capital use and streamline its customer segmentation which will optimise its resources in the most efficient manner.



“WOM Finance will cease to be a subsidiary of Maybank Indonesia with effect from the completion of the proposed disposal. However, WOM Finance will continue to be a significant business partner of Maybank Indonesia in the future,” Maybank said.