PETALING JAYA: Malaysia Building Society Bhd (MBSB) has been given the green light by the finance ministry for its acquisition of Malaysian Industrial Development Finance Bhd (MIDF).
In its bourse filing today, MBSB said it has received notification from Bank Negara Malaysia that the ministry has granted approval for its proposed acquisition of MIDF from Permodalan Nasional Berhad (PNB).
This would be the first bank merger in over five years in Malaysia.
It said the transaction will result in a well-capitalised financial services group, which is financially resilient and is able to compete in the market with a stronger balance sheet.
MBSB added that “it will create a universal banking group with end-to-end banking services comprising consumer banking, commercial & SME banking, development finance, corporate banking, investment banking and asset management, servicing a wider customer base that extends beyond MBSB Bank and MIDF’s pool of existing customers.”
Group CEO of MBSB Nor Azam M. Taib said, “With the combined strength and expertise of both MBSB and MIDF, we will be able to expand into new and larger customer segments through tailored financing, structuring and advisory solutions to support the business needs and growth of consumers and corporate clients.”
MIDF, the diversified financial services provider, is wholly owned by PNB, whereas MBSB is 65.87% owned by the EPF.
According to a source, EPF is expected to emerge as the single-largest shareholder in the merged entity, with PNB holding less than 20%.
At the market’s close, MBSB shares rose 1.5 sen or 2.54% to 60.5 sen, giving the company a market capitalisation of RM4.3 billion. - FMT
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