MBSB gets BNM nod for talks on merger with Bank Muamalat

PETALING JAYA: Malaysia Building Society Bhd (MBSB) is in talks with the shareholders of Bank Muamalat Malaysia Bhd, Khazanah Nasional Bhd and DRB-Hicom Bhd, for a proposed merger between the two.
MBSB has a market capitalisation of RM4.3 billion. Bank Muamalat is one of only two domestic standalone Islamic banks in Malaysia.
In a filing with Bursa Malaysia yesterday, MBSB said Bank Negara Malaysia (BNM) said it has no objection in principle for them to hold talks.
BNM requires that the negotiations must be completed within three months from the date of the central bank’s letter.
MBSB said further details on the proposed merger will be announced later. MBSB’s shares were up 5 sen or 3.42% yesterday to close at RM1.51.
Citigroup Global Markets Ltd and AmInvestment Bank Bhd will act as advisers for MBSB in the proposed merger.
DRB-Hicom owns a 70% stake in Bank Muamalat, while Khazanah Nasional owns the remainder. DRB-Hicom bought its stake in Bank Muamalat from Al-Bukhary Capital Sdn Bhd for RM1.07 billion in 2008.