Maybank; Buy; RM10.36
Price Target: RM11.80; MAY MK

Maybank has announced that it has disposed of 5.1bn shares or approximately 9% of its stake in Bank Internasional Indonesia (BII). With the disposal, the free float of BII’s shares has increased from around 2.7% to 11.7% of the issued and paid-up share capital of BII. The disposal was done in accordance to  regulations set when Maybank acquired BII in 2008 where a requirement was made to achieve a free float of 20% public float in BII.

Maybank is applying for an extension to comply with the sell down requirement to Otoritas Jasa Keuangan (OJK) in respect of the remaining 8.3% stake in BII.

There was no price disclosed in the announcement. Based on the closing price of BII on 19 June at Rp365 per share, we estimate that the sale could have resulted in sales proceeds of approximately RM600m.

Maybank remains a BUY on our list with RM11.80 TP. It offers the highest dividend yield in the sector based on 70% payout assumption.

Source: HwangDBS Research - 21 Jun 2013