KUALA LUMPUR (May 4): Malayan Banking Bhd (Maybank) has aborted plans to sell off its 68.55% stake in Indonesia-listed PT Wahana Ottomitra Multiartha Tbk (WOM Finance) to PT Reliance Capital Management (RCM) for IDR673.77 billion (RM229.08 million) after certain conditions were not met.

In a filing with Bursa Malaysia today, Maybank said the proposed disposal has been terminated as certain conditions precedent to the conditional share purchase agreement, which were scheduled to be satisfied by April 30, have not been fulfilled.

With the aborted deal, WOM Finance will continue to be a subsidiary of PT Bank Maybank Indonesia Tbk, which in turn is 98.31% owned by Maybank. WOM Finance provides financing for new and used motorcycles, with the majority of consumer financing granted for motorcycle brands Honda, Yamaha and Suzuki.

"The proposed disposal and its termination are not expected to have any material effect on the earnings per share and net assets per share of the Maybank group for the financial year ending Dec 31, 2017," said Maybank.

Maybank Indonesia had on Jan 11 this year entered into an agreement with RCM for the proposed sale and transfer of its entire 68.55% stake in WOM Finance to RCM. It was expected to be completed by the first quarter of 2017.

Maybank Indonesia had then said the proposed disposal was part of its strategic initiative to maximise its capital use and streamline its customer segmentation, which will enable it to optimise its resources in a most efficient manner.

Maybank's share price fell seven sen or 0.76% to close at RM9.20 today, giving it a market capitalisation of RM94.04 billion. Year to date, the counter has risen by 14.9% from RM8.01 on Jan 3.