Malaysian Building Society Bank Bhd’s share price rose 4 sen to close at 64 sen with 53.4 million shares changing hands following the announcement that MBSB had obtained Bank Negara approval to commence negotiations for the proposed acquisition of Malaysian Industrial Development Finance Bhd (MIDF).
In a Bursa filing, MBSB had said that it had no objection for MBSB to enter discussions with Permodalan Nasional Bhd (PNB) to explore the possibility of undertaking an acquisition of 100 percent shareholding in MIDF, which is held by PNB.
An analyst in a local research house said that whether it be a profitable acquisition for MBSB would greatly hinge on the price and the amount that MBSB would have to fork out adding that if the price/book ratio exceeds more than 1.5 to 2 times, it may not be profitable for MBSB
MBSB said BNM’s approval was valid for a period of six months from the date of its letter.
