MBSB shares up on merger proposal

KUALA LUMPUR: Malaysia Building Society Bhd’s (MBSB) share price rose five sen to RM1.16 this morning after the company proposed to acquire the entire equity interest in Asian Finance Bank Bhd (AFB) for RM644.95 million.
At 10.53 am, a total of 15.46 million shares were traded.
Trading in MBSB shares, which were halted yesterday, resumed at 9 am today.
The purchase will be satisfied via RM396.89 million in cash and an issuance of 225.51 million new ordinary shares in MBSB at RM1.10 a piece, the non-bank lender said in a filing with Bursa Malaysia.
The proposed issue price represented a one sen discount to MBSB’s closing price of RM1.11 last Friday, and would enlarge MBSB’s share base by 225.51 million shares.
The shareholders of AFB are namely Qatar Islamic Bank, Financial Assets Bahrain W.L.L, RUSD Investment Bank Inc and Tadhamon International Islamic Bank.
It is believed that a merger of the two entities, expected to be completed in the first quarter of 2018, would create the country’s second-largest stand-alone Islamic bank with total assets of RM47.81 billion, after Bank Islam Malaysia Bhd.
Source : https://www.nst.com.my/business/2017/11/300225/mbsb-shares-merger-proposal
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