Maybank Indonesia proposes to sell stakes in WOM Finance

KUCHING: Maybank Indonesia, the Indonesian operation of Malayan Banking Bhd (Maybank) has proposed to dispose off its entire stake in Indonesian PT Wahana Ottomitra Multiartha Tbk (WOM Finance) to PT Reliance Capital Managment (RCM).

The banking group in a filing to Bursa Malaysia yesterday said MaybankIndonesiahadonJanuary 11 entered into a conditional shares purchase agreement with RCM for the proposed disposal of Maybank Indonesia's entire equity interest of 68.55 per cent in WOM Finance to RCM.

The proposed disposal involved the sale of Maybank Indonesia's entire equity interest in WOM Finance to RCM for approximately Rupiah673.77 billion or equivalent to RM229.08 million.

Maybank revealed that the completion of the proposed disposal is expected to be finalised within the first quarter of 2017 (1Q17).

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

Maybank explained that 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 resourcesin the most efficient manner.

WOM Finance will cease to be a subsidary of Maybank Indonesia with effect from the completion of the proposed disposal exercise.

RCM is a limited liability company incorporated under Indonesianlawandhassubsidiaries 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).