KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) has completed the acquisition of the entire equity interest in Malaysian Industrial Development Finance Bhd (MIDF) from Permodalan Nasional Bhd.
The purchase consideration of RM1.01bil 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 Oct 2, 2023.
Following the merger, MBSBS said MIDF is now a wholly-owned subsidiary of the group while PNB is now a substantial shareholder of MBSB with a 12.78% stake.
The Employees Provident Fund’s (EPF) shareholding in MBSB has been reduced from 65.78% to 57.45%.
"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 and SME banking to corporate and investment banking businesses,” said MBSB group CEO Rafe Haneef in a statement.
The final consideration shares will be listed on the Main Market of Bursa Securities on Oct 3, 2023.