Maybank Indonesia to sell stake in WOM

PETALING JAYA: Malayan Banking Bhd (Maybank) proposes to dispose off its entire 68.55% stake in Indonesia-listed WOM Finance, for 673.77 billion rupiah (RM229.08 million) cash.

In a filing with the stock exchange, Maybank said its subsidiary Maybank Indonesia had entered into a conditional shares purchase agreement with PT Reliance Capital Management (RCM) for the deal, which is expected to be completed by the first quarter of 2017.

WOM Finance provides financing for new and used motorcycles, with the majority of consumer financing granted for well-established motorcycle brands.

Maybank said the disposal is part of Maybank Indonesia’s strategic initiative to maximise its capital use and streamline its customer segmentation, which will optimise its resources in the most efficient manner.

However, Maybank noted that WOM Finance will continue to be a significant business partner of Maybank Indonesia in the future.

Meanwhile, RCM’s subsidiaries are involved in providing 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).

Maybank shares rose one sen to close at RM8.31 yesterday, with 11.99 million shares changing hands.