MALAYSIAN Industrial Development Finance Bhd (MIDF), which provides a variety of financial services except merchant banking, aims to become an investment bank, said chairman Tan Sri Mahmood Taib.
“We have been looking for opportunities,'' he told reporters after the group's AGM and EGM in Kuala Lumpur yesterday.
Group chief executive Datuk Mohd Sallehuddin Othman, who was also present, said the financial group was waiting for Bank Negara to release the latest requirements for the formation of investment bank before it could map out its plans.
“We are waiting for a definite statement from the authorities,'' he said. “We have most of the components needed to be an investment bank. We are only short of a merchant bank.''
Sallehuddin said though the group had made efforts to seek a merchant bank, none were available, adding that some might be available in the next round of consolidation in the local banking sector.
Shallehuddin also said the group's earnings prospects were bright, especially since Amanah Capital Partners Bhd (ACP)'s profits were to be fully booked in.
The acquisition of ACP, which offers discount house facilities, money broking and asset management, has enlarged MIDF's presence in the financial services sector.
MIDF's net profit doubled to RM53.9mil for the financial year ended March 31, against RM25.5mil in 2002. Turnover surged to RM301.7mil from RM154.4mil the prior year.
ACP contributed pre-tax profit of RM54.2mil for the fourth quarter ended March 31, the first financial period for which its operating results were consolidated into MIDF's group earnings.
The group completed its voluntary offer to privatise ACP in March. ACP was removed from the KLSE the following month.
The privatisation plan was to fill the vacuum in MIDF created by the disposal of its stakes in Oriental Bank Bhd and Malaysian International Merchant Bankers Bhd.
Before the privatisation, MIDF was mainly involved as an issuing house and in stockbroking and development finance.
MIDF is now implementing an internal reorganisation scheme through six intra-group share sale agreements between firms in MIDF and ACP. The scheme is to group the subsidiaries into four core businesses – capital markets and securities, asset management, development financing, and property-related.
Amanah Capital Malaysia Bhd, Permodalan Nasional Bhd, Skim Amanah Saham Bumiputra and Malayan Banking Bhd are the four substantial shareholders of MIDF.
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