Affin Holdings purchase of Indonesian bank is off

by **hlk** Thu 04 Aug 2011, 19:14

KUALA LUMPUR: AFFIN HOLDINGS BHD []’s proposed acquisition of Indonesia’s PT Bank Ina Perdana has been called off on mounting worries about its central bank limiting majority shareholdings in commercial banks.

Affin said on Thursday, Aug 4 that the share purchase agreement (SPA) and subscription agreement (SA) had lapsed, exactly one year after they were signed.

It said the conditions precedent to these agreements had not been fulfilled as of Aug 4, 2011. Most importantly, Affin expressed concern about Bank Indonesia’s currently study of the policy to limit majority shareholdings in commercial banks in Indonesia.

“Affin and the parties to the SPA and SA are of the view that it would be in the best interest of all parties to discontinue with the existing agreements. All parties may renegotiate the terms of the proposals after the policy has been released,” it said.

The corporate proposals involved Affin Bank acquiring 20.82% or 65.28 million existing shares in the enlarged paid-up share capital of Bank Ina, proposed subscription of 185.60 million new shares of 59.18%.

The exercise also involved a proposed put and call option for up to 56.48 million existing shares of up to 18.01% of the enlarged paid-up of Bank Ina.