Malaysia-based RHB Capital has reportedly scrapped its earlier plan to acquire nearly 40% shareholding in Indonesia’s PT Bank Mestika Dharma.
In a filing with Bursa Malaysia, the lender said that it could not secure approvals from the concerned Indonesian authorities.
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"The termination of the proposed acquisition is not expected to have a material impact on the consolidated earnings per share and net assets per share of RHB Capital for the financial year ending Dec 31, 2014," according to the filing.
RHB Capital said that as approval from the Financial Services Authority of Indonesia (OJK) for the deal had not been obtained, it failed to fulfill conditions for the sale and purchase agreement expiring on June 30. As a result, the parties had decided not to extend the conditional period.
RHB Capital initially planned to buy 80% equity stake in Bank Mestika; however it reduced the stake to 40%, following Indonesia’s central bank announcement to limit single-party ownership of domestic banks in 2012.
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