Private lender Maybank Indonesia has sold all stakes in motorcycle financing firm Wahana Ottomitra Multiartha (WOM Finance) to Indonesian financial services provider Reliance Capital Management in a deal worth Rp 673.8 billion (US$50.71 million).
Maybank announced on Thursday that it had signed a conditional share purchase agreement with Reliance Capital Management on Jan. 11 to sell 2.39 billion shares—equal to 68.55 percent stake—in WOM Finance.
“The transfer of shares is one of the company’s strategic initiatives to maximize the company’s capital allocation and to streamline customer segmentation, so they can contribute to the optimization of the company’s resources,” Maybank wrote in a statement submitted to the Indonesia Stock Exchange (IDX).
The share transfer is expected to be completed in the first quarter of 2017, after both companies fulfill all terms listed in the agreement.
Data from Maybank said the automotive slowdown in the past few years had dragged down its own financial performance, as WOM posted poor results.