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Maybank calls off talks with Indonesia’s Panin

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Points of Essence:

  • The Malaysian banking fraternity is bracing for yet another surprise with Maybank’s latest failed conquest. Reeling from the uncertainty of the BII deal for a banking expansion in Indonesia, this is another setback for Maybank as it sought to venture into Indonesian takaful industry. The proposed joint venture with Indonesian Panin would have given Maybank a 60% stake in Panin’s subsidiary PT Anugrah Life Insurance.
  • Citing circumstances beyond their control for the related parties not to proceed with the partnership negotiations, the bank committed to penetrate into Indonesia’s takaful industry at future opportunities.
  • However, it remains to be seen how this failure will affect Maybank’s future regional  expansion plans.
  • On another note, we have seen a string of faltered Indonesian deals for Malaysian companies lately, raising concerns on the viability of the investment ventures in Indonesia given its unfriendly investment environment.

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has called off its discussions with Indonesia’s Panin on a possible joint-venture partnership to venture into the takaful industry there.

However, despite the setback, Maybank said on Wednesday it was still keen on Indonesia as a target market for its insurance and takaful expansion.

“Maybank would continue to look for possible options in developing its insurance and takaful business in Indonesia,” it said.

Maybank’s JV with Panin would have involved Maybank acquiring 60% stake in Panin’s subsidiary PT Anugrah Life Insurance.

On Aug 4, Maybank informed that the deadline for the submission of relevant documents to Indonesia’s Ministry of Finance (MOF) had expired on Aug 4 and consequently, the approval obtained from MOF had also lapsed.

However, Maybank continued to engage with Panin to seek resolution of the partnership.

“Maybank would like to inform that due to unavoidable circumstances not within its control, both Maybank and Panin are unable to proceed further in formalising the proposed JV partnership.

“In view of this, Maybank has notified Panin and Anugrah today that all arrangements relating to it pursuant to the above MOU be formally terminated,” it said.

Source: thestar.com.my

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Written by Suapi Shaffaii

September 3, 2008 at 3:39 pm

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