Malaysia Building Society Berhad (MBSB) has signed a conditional share purchase agreement to acquire Malaysian Industrial Development Finance (MIDF).
The purchase consideration of approximately RM1.01 billion will be made possible by issuing approximately 1.05 billion new MBSB shares.
This agreement will see MBSB take over the Permodalan Nasional Berhad (PNB) stake in MBSB.
MIDF will become a subsidiary of MBSB. Meanwhile the Employees’ Provident Fund Board and PNB will continue to hold a percentage of interest in MBSB.
“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,” said Datuk Nor Azam Bin M. Taib, Group Chief Executive Officer of MBSB in a statement announcing the acquisition earlier this week.
The enlarged group’s business interests include consumer banking, commercial & SME banking, development finance, corporate banking businesses and investment banking business.
MBSB will table the Proposed Acquisition for shareholders’ consideration by August 2023.