PETALING JAYA: Malaysia Building Society Bhd’s (MBSB) acquisition of Malaysian Industrial Development Finance Bhd (MIDF) from Permodalan Nasional Bhd (PNB) has been completed with the issuance of shares worth RM1.01 billion to the latter.
In a statement today, MBSB said the purchase consideration has been settled by the issuance of 1.05 billion new MBSB shares at 96.52 sen per share allotted to PNB today.
PNB is now a substantial shareholder of MBSB with an equity stake of 12.78% while the Employees Provident Fund’s (EPF) shareholding in MBSB is reduced from 65.78% to 57.45%.
MIDF is now a wholly owned subsidiary of MBSB, which has emerged as the second-largest standalone Islamic bank after Bank Islam Malaysia Bhd.
“The completion of this merger is strategically compelling as the enlarged group would emerge more financially resilient.
“By combining the strengths, we are well-positioned to provide customers with better service, innovative products, personalised experiences and even greater sustainability,” said MBSB’s group CEO Rafe Haneef.
He added as a major player in Islamic banking, MBSB’s capacity is strengthened through a bigger balance sheet, wider reach, and a range of new offerings.
MBSB said the shares issued will be listed on the Main Market of Bursa Securities tomorrow.
MBSB’s Islamic banking subsidiary MBSB Bank offers Shariah-compliant banking solutions to retail, SME and corporate customers.
Meanwhile, MIDF supports small and medium enterprises (SME) and corporates through investment banking, development finance, asset management, Shariah-compliant financing as well as wealth products.
MBSB’s shares ended half-a-sen or 0.7% higher at 73.5 sen, valuing it at RM5.3 billion.