KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) has entered into a conditional share purchase agreement with Permodalan Nasional Bhd (PNB) to acquire the entire share capital of Malaysian Industrial Development Finance Bhd (MIDF), comprising 480.35 million shares currently held by PNB worth RM1.01 billion.
MBSB told the stock exchange that upon completion of the proposed acquisition, MIDF will become a wholly-owned subsidiary of MBSB.
MBSB said the proposed acquisition will result in a well capitalised financial services group that is financially resilient to compete in the market with a stronger balance sheet.
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"It will create an enlarged banking group with end-to-end banking services... servicing a wider customer base that extends beyond MBSB Bank and MIDF Group’s pool of existing customers,” it added.
MBSB group chief executive officer Datuk Nor Azam M Taib said the potential synergies between MBSB Bank and MIDF would enable the enlarged group to serve a wider group of customers through tailored financing, structuring, and advisory solutions.
"Our combined strength and expertise put us in a better position to support the business needs and growth of consumer and corporate clients,” he said in a media statement.
MBSB expects to table the proposed acquisition for shareholders’ consideration by August 2023. - Bernama
