Malaysia Building Society Berhad has finally completed its acquisition of the entire equity interest of Malaysian Industrial Development Finance Berhad from Permodalan Nasional Berhad after its first courtship 2 years ago.
The purchase consideration of RM1.01 billion was settled by the issuance of 1.05 billion new MBSB shares at RM0.9652 per share (Final Consideration Shares), which were allotted to PNB on 2 October 2023.
MBSB said through the merger, MIDF will now be a wholly-owned subsidiary of the bank and PNB will emerge as a substantial shareholder of MBSB with an equity stake of 12.78%. The Employees Provident Fund’s shareholding in MBSB is reduced from 65.78% to 57.45%.
According to MBSB’s Group Chief Executive Officer, Rafe Haneef, “The completion of this merger is strategically compelling as the enlarged Group would emerge more financially resilient and as a major player in Islamic banking, with a strengthened capacity through a bigger balance sheet, a wider reach and a whole range of new offerings from Consumer Banking, Commercial & SME Banking to Corporate & Investment Banking businesses.”
He added, “By combining the strengths, we are well-positioned to provide customers with better service, innovative products, personalised experiences, and even greater sustainability.”
“As we move forward as a united front, our mission is to create an environment where everyone thrives. We are dedicated to a high-performance culture, built on our core values of Humility, Professionalism, Ethics, Empathy, and Passion”, concluded Rafe. Since its incorporation in 1960 as a pioneer for development finance, MIDF has been supporting SMEs and corporates as part of the country’s industrialisation efforts. MIDF is a financial services provider focusing on three core areas; investment banking, development finance, and asset management which also includes Shariah-compliant financing and wealth products.
Meanwhile, MBSB’s Islamic banking subsidiary, MBSB Bank Berhad (MBSB Bank) provides a wide range of Shariah-compliant banking facilities to retail, SME and corporate customers. These solutions include bridging financing, term financing, trade financing, personal financing, home financing, and a variety of savings and deposit options.
The Final Consideration Shares will be listed on the Main Market of Bursa Securities on 3 October 2023.