Tuesday, November 7, 2017

MBSB Acquire Asian Finance Bank

mbsbMalaysia Building Society Bhd (MBSB) will acquire the entire equity interest in Asian Finance Bank Bhd (AFB) for RM644.95 million. The shareholders of AFB are namely Qatar Islamic Bank, Financial Assets Bahrain WLL, RUSD Investment Bank Inc and Tadhamon International Islamic Bank.

In a filing to Bursa Malaysia yesterday, the non-bank lender said the purchase consideration would be satisfied through a combination of cash amounting to RM396.89 million and the issuance of 225.51 million new ordinary shares in MBSB at RM1.10 per share.

To recap, on Aug 18, MBSB received the green light from Bank Negara for the proposed acquisition of 100% of AFB pursuant to the Islamic Financial Services Act 2013. It was reported that a merger of the two entities would create the country’s second-largest stand-alone Islamic bank with total assets of RM47.81 billion, after Bank Islam Malaysia Bhd.

Barring any unforeseen circumstances and subject to the approvals being obtained from the relevant authorities, the proposed merger was expected to be completed in the first quarter of 2018.

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