Maybank could have given out cheap loans of RM8.25 billion to the public to face the global financial crisis instead of wasting it on acquiring PT Bank Internasional Indonesia (BII), said Guan Eng. By investing in the the Indonesian bank, Maybank has suffered “almost immediate losses of RM4 billion”.
The current global financial crisis could lead to a severe Depression and will hurt many economies. Ordinary Malaysians are unlikely to be spared. “Why not use RM8.25 billion to help tens of thousands of businesses and hundreds of thousands of ordinary Malaysians instead of buying one bank?” he asked in a statement on Saturday.
By proceeding ahead with the deal on the basis it was a commercial decision, Maybank has acted irresponsibly and even unprofessionally, claimed Guan Eng. “Why not cut losses, lose face by admitting it’s a mistake and forfeit its RM483 million deposit? Instead Maybank decided to proceed with spending RM8.25 billion to acquire a bank that nobody wanted.”
The vendors, Singapore state investment company Temasek Holdings Pte. Ltd. and South Korea’s Kookmin Bank were “so desperate” to sell their 56% stake in BII that they were willing to give a further 15% discount of RM758.9 million even AFTER the deal has been closed, he remarked: “No wonder a 15% discount was given when Maybank bought at a price that is more than 65% higher than the prevailing market price or 4.3 times BII’s book value compared to the current market valuation of Indonesian banks at a maximum of 2.7 times.”
CIMB Research estimated that the cost to acquire 100% of BII at RM8.25bil, or 467.2 rupiah per share, was still 51% higher than BII’s current market price of 310 rupiah, he pointed out.
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A teacher (business guru) of mine said, “If your boss is stupid, don’t tell him that he is stupid. You’ll be in trouble.” Just wait till he himself realises that he is stupid. Then you come into the picture, pretending to empathise with him. You become the hero then. This formula has worked in my case.
(Maybe) somebody somewhere got big fat commissions for closing the deal.
Just follow the money trace!
The bulk of the supposed ‘profit’ by Temasek Holdings Pte. Ltd. and South Korea’s Kookmin Bank is (allegedly) ‘commission’ for a 3rd party GLC-linked M’sian entity.
The discount given represent a discount from this ‘profit’1
FHM, this profit is supposed to (be allegedly) used in kicked start the Iskandar Development region in Southern Johor.
As the saying goes, man planned God disposed, the recent ‘in-house’ political twists has somehow ‘gate-crashed’ this planned ‘showcase’ event.
All say Joe M’sian r once again been used to parodise the political end-games of the dying party.
Hey you guys watch Formula One? One strategy is a racer-partner will sacrifices in order to booste the ‘ascent’ of the champion.
Possible that MBB is sacrificing by being the ‘silly one’ its shares will drop and another bank will soon buy it over/merge it up as a minor!?
Huh – lets wait for the drama to unfold.
Fairdinkum ,
to buy something in Indonesia is a slapstick what more to buy an Indonesian bank and Maybank did it, bravo. Whoever penned it would have money coming out of his ears.
Haiya, easy $$$$$$ mah!
Time is running out fast on them.
What can I say? What can we Malaysians say? After March 8, these kinds of things still happen, in fact more frequently. Look at the Eurocopter tender, look at this BII thingy… WTF man, continue to pay income taxes and these bunch of idiots keep screwing your money up!
When idiots are employed based on quota system, this is what you get. Pity those who have millions in their account with the bank. Their saving interest rate was one of the worst. The government too always stifle competition by imposing mindless regulations.
Whoever is responsible should shoot himself. …
The problem is we have people up there who do not really have the business acumen. Capable people are sidelined to lead big organizations and banks and this is what we get. RM4 billion loss is no joke. It will lose more soon with the present economic climate. If this happens in Japan the bank CEO will resign or commit harakiri. Here, I suppose they will wait for a bailout if anything worse is going to happen to the bank. … May the Divine power save the country.
The timing of going into this deal is enough to arouse suspicion especially so, when the subprime woes broke out months before their decision. Any sane individual would have adopted a wait and see stance. If a layman like me could foresee whatever this world is going through today, i don’t see why they, supposedly as professionals, couldn’t see this coming. Either they are just a bunch of incompetent idiots or there is some foul play somewhere. (Perhaps) both? Anyway, this is always part of their culture. Shortcut way to be big. Just pay premium to be big. Imagine 8… Read more »
Sorry Anil side track a little.
Freedom Of The Press, the way rockybru sees it.