KUALA LUMPUR (Dow Jones)--Malayan Banking (1155.KU) is in discussions with various parties, including Indonesian regulators, to try to resolve whether it can proceed with its plan to buy PT Bank Internasional Indonesia Tbk, (BNII.JK), the Bernama news agency reported Monday.
"The underlying issue is actually with regard to the introduction of new takeover rules...which has triggered the change in event," said Maybank's President and Chief Executive Abdul Wahid Omar, according to the report.
In March, Maybank won the bid to acquire a 55.5% stake in BII from Temasek Holdings Pte. Ltd, Singapore's state-owned investment company, for $2.7 billion. It planned to buy the remaining BII stake for an additional $1.2 billion.
It signed the acquisition agreement on March 26 and has until Sept. 26 to complete the deal.
However, in July, Bank Negara Malaysia revoked its approval for the transaction on the grounds that Maybank would suffer heavy losses if it proceeded with the acquisition under new Indonesian takeover rules.
The new rules require Maybank to sell a 20% stake in BII within two years of the acquisition.
Talks are being held with Temasek and Indonesian regulators to resolve the issue, the report said.
"We are still keen to proceed with this transaction," Abdul Wahid said.
He added that discussions don't include the offer price, but are focused on addressing the takeover rule, according to the report.
"There is no issue of renegotiating the price," he said.
-By Kuala Lumpur bureau; Dow Jones Newswires; 603-2692-5254; djnews.kldowjones.com
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