KUALA LUMPUR (Oct 2): Malaysia Building Society Bhd (MBSB) has completed its acquisition of Malaysian Industrial Development Finance Bhd (MIDF) from Permodalan Nasional Bhd (PNB) for RM1.01 billion worth of new share issuance at 96.52 sen per share.

MBSB told Bursa Malaysia on Monday that 1.05 billion new shares were allotted to PNB, resulting in PNB emerging as a substantial shareholder with a 12.78% stake.

Meanwhile, the Employees Provident Fund’s (EPF) shareholding in MBSB was reduced from 65.78% to 57.45%.

“The completion of this merger is strategically compelling, as the enlarged group would emerge more financially resilient and as a major player in Islamic banking, with a strengthened capacity through a bigger balance sheet, a wider reach, and a whole range of new offerings from consumer banking, commercial and SME (small and medium enterprise) banking to corporate and investment banking businesses,” said MBSB group chief executive officer Rafe Haneef.

“By combining the strengths, we are well positioned to provide customers with better service, innovative products, personalised experiences, and even greater sustainability. As we move forward as a united front, our mission is to create an environment where everyone thrives. We are dedicated to a high-performance culture, built on our core values of humility, professionalism, ethics, empathy and passion,” he added.

MIDF, now a wholly-owned subsidiary of MBSB, is a financial services provider focusing on three core areas — investment banking, development finance, and asset management, which also includes shariah-compliant financing and wealth products.

Shares in MBSB, which had climbed 37% year-to-date, were trading half a sen or 0.7% higher at 73.5 sen at Monday's noon market break, giving the group a market capitalisation of RM5.27 billion.

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