KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) has signed a conditional share purchase agreement with Permodalan Nasional Berhad (PNB) to take over Malaysian Industrial Development Finance (MIDF) for RM1.01 billion.
MBSB will pay for the deal by issuing about 1.05 billion new shares in the group at an issue price of RM0.9652 to PNB.
Upon completion, MIDF will become a wholly-owned subsidiary of MBSB while the Employees' Provident Fund Board and PNB's interests in MBSB will be approximately 57.45 per cent and 12.78 per cent, respectively.
The purchase price represents a price-to-book ratio (PBR) of approximately 0.85 times of MIDF's adjusted net assets as at December 31, 2022.
MBSB group chief executive officer Datuk Nor Azam M. Taib said 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.
He said the combined strength and expertise puts MBSB in a better position to support the business needs and growth of consumer and corporate clients.
The proposed acquisition would also provide an impetus for a transformational change and common strategy across the enlarged group under the stewardship of an experienced leadership and management team.
MBSB expects to table the proposed acquisition for shareholders' consideration by August 2023.