Maybank Indonesia sells stake in WOM Finance to Reliance Capital Management
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Private lender Maybank Indonesia has sold all stakes in motorcycle financing firm Wahana Ottomitra Multiartha (WOM Finance) to Indonesian financial services provider Reliance Capital Management in a deal worth Rp 673.8 billion (US$50.71 million).
Maybank announced on Thursday that it had signed a conditional share purchase agreement with Reliance Capital Management on Jan. 11 to sell 2.39 billion shares—equal to 68.55 percent stake—in WOM Finance.
“The transfer of shares is one of the company’s strategic initiatives to maximize the company’s capital allocation and to streamline customer segmentation, so they can contribute to the optimization of the company’s resources,” Maybank wrote in a statement submitted to the Indonesia Stock Exchange (IDX).
The share transfer is expected to be completed in the first quarter of 2017, after both companies fulfill all terms listed in the agreement.
Data from Maybank said the automotive slowdown in the past few years had dragged down its own financial performance, as WOM posted poor results.
Questions & Answers
Q.What is the total value of Maybank Indonesia's sale of its stake in WOM Finance?
What is the total value of Maybank Indonesia's sale of its stake in WOM Finance?
Maybank Indonesia sold its stake in WOM Finance for Rp 673.8 billion, which is equivalent to US$50.71 million. This figure represents the entire value of the transaction with Reliance Capital Management.
Q.When did Maybank Indonesia and Reliance Capital Management formally agree to the sale?
When did Maybank Indonesia and Reliance Capital Management formally agree to the sale?
Maybank Indonesia and Reliance Capital Management signed a conditional share purchase agreement on January 11. This agreement outlines the terms and conditions for the transfer of shares in WOM Finance.
Q.What percentage stake did Maybank Indonesia sell in WOM Finance?
What percentage stake did Maybank Indonesia sell in WOM Finance?
Maybank Indonesia sold 2.39 billion shares in WOM Finance, which constitutes a 68.55 percent stake. This complete divestment transfers majority ownership to Reliance Capital Management.
Q.What was Maybank's primary reason for selling its stake in WOM Finance?
What was Maybank's primary reason for selling its stake in WOM Finance?
Maybank stated the sale is a strategic initiative to maximise capital allocation and streamline customer segmentation. This aims to optimise the company's resources and improve overall financial performance.
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