Bank Pembangunan Malaysia Berhad (BPMB) today announced the completion of all the conditions precedent in the Sale and Purchase Agreements with Credit Guarantee Corporation Malaysia Berhad and Minister of Finance (Incorporated) (MOF Inc.) for the 100% acquisition of Danajamin Nasional Berhad (Danajamin).
The purchase consideration is based on Danajamin’s audited net asset value (NAV) as of June 30.
The acquisition transforms Danajamin into a wholly-owned subsidiary of BPMB.
This is in line with the Government’s aim of improving the development finance sector to better support businesses and national development as a whole.
Commenting on this significant milestone, BPMB’s Chairman, Dato Sri Nazir Razak said, “As one of Malaysia’s oldest DFIs(Development Financial Institution), we are cognizant of the need for BPMB to play an enhanced role to bolster Malaysia’s economic development to meet its medium to long-term growth aspirations.
The merger is expected to generate revenue and cost synergies over time as the two institutions increasingly share resources and integrate operations. “As the phase one of a bigger plan to consolidate DFIs, we are determined that this merger will prove to be a benchmark for successful DFI mergers,” Nazir concluded.
