Malaysia's Maybank in $2.7 billion bid for Indonesia BII

By Clarence Fernandez and Saeed Azhar

KUALA LUMPUR/SINGAPORE (Reuters) - Malaysia's biggest lender, Malayan Banking Bhd (MBBM.KL: Quote, Profile, Research, Stock Buzz), is set to buy a controlling stake in Bank Internasional Indonesia (BII) for $1.5 billion, gaining a foothold in Southeast Asia's biggest economy.

Maybank, which is buying the 56 percent stake in Indonesia's sixth-biggest lender from Singapore state investor Temasek TEM.UL and South Korea's Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz), said it would also launch an offer for the remaining 44 percent of BII for about $1.2 billion.

That would value the bank at $2.7 billion, 23 percent above its market value on Tuesday.

Maybank, criticized by analysts for moving too slowly outside its home market, said on Wednesday the acquisition would help it access the potential of Indonesia's relatively untapped and fast-growing banking market.

"I'm very surprised to see the price tag at about 4.6 times 2007 price-to-book value even for a controlling stake," said UBS analyst Joshua Tanja in Jakarta.

"I never realized someone (was) really that eager to buy into the Indonesian banks. It's good news for the rest of the sector and certainly a very good benchmark for other potential strategic sales in the mid-size banks space," he added.

Maybank agreed to buy a 42 percent stake in BII from Singapore state investor Temasek Holdings for 10.4 trillion rupiah ($1.13 billion), while it said it will also acquire almost 14 percent from Kookmin for 3.5 trillion rupiah ($381 million).

However, it was unclear if Kookmin will agree to sell its stake given it was a contender to buy the bank.