Affin cancels plan to buy Bank Ina Perdana

Concern on Indonesia central bank’s latest policy prompted the Malaysian lender to halt the bid.

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.

View the full story in The Edge Malaysia.