PETALING JAYA: Malaysia Building Society Bhd’s (MBSB) proposed acquisition of Malaysian Industrial Development Finance (MIDF) is expected to take place by September this year.
Group chief strategy officer Azlan Shahrim said an extraordinary general meeting (EGM) will be convened either in July or August in order to obtain shareholders’ consent.
“We’re hoping that shareholders will support it,” he said after MBSB’s 53rd annual general meeting yesterday.
MBSB recently signed a conditional share purchase agreement with MIDF’s parent, Permodalan Nasional Bhd (PNB), to acquire the development financial institution for RM1.01 billion.
Meanwhile, group CEO Nor Azam Taib said MBSB has launched a mitigation plan to address slim interest margins following several rounds of overnight policy rate hikes by Bank Negara Malaysia.
The group also plans to reduce its non-performing loan ratio to below 4% this year, down from the present 6.7%.
He added that MBSB is confident of achieving an 8-10% financing growth this year.
Regarding the bank’s EPF Account 2 Support Facility (FSA2), Azam said it is projected to reach RM1 billion by the end of this month from the current RM900 million.
MBSB, he said, plans to introduce the second phase of the facility, which would cover applicants aged 40 and below.
Applications for the first phase of FSA2 remain open until April 6, 2024.
As of noon, MBSB’s share price was flat at 65 sen, giving it a market capitalisation of RM4.66 billion.