I am selling all my mbsb....no more merge with Bank Islam...plan to buy Kuwait Finance instead. Disappointed :(

Going to sell all my bimb and mbsb shares....disappointed :(

Bought 1.95....analysts gave wrong reviews.....

Merger in 2 years time

Although the potential merger between Malaysia Building Society Bhd (MBSB) and Bank Islam Malaysia Bhd remains market talk, MBSB recently confirmed that a merger with an Islamic financial institution is still on the cards, within this year or next.

Local media reported that MBSB president and chief executive officer Ahmad Zaini Othman reiterated the group’s aspiration to be an Islamic financial institution and with that, the need for it to merge with an Islamic financial entity.

This aspiration is renewed, as the three-way mega merger with CIMB Group Holdings Bhd and RHB Capital Bhd that would have seen MBSB acquired by the two banks’ Islamic banking operations fell through.

However, Zaini noted that MBSB is not actively in talks with any financial institutions on any merger or acquisition at the moment, according to The Edge Financial Daily.

“This kind of thing requires a little bit more study and analysis. But it doesn’t mean that we need to talk to financial institutions to be able to go into that kind of platform.

“We are looking and studying the basis first and get our shareholders to basically think through and they will evaluate and say which is the best decision and we will take it from there,” he told reporters last week after MBSB held its annual general meeting.

He said the critical work was in closing the gap in the operations to be in line with the authorities and the regulatory framework of the central bank.

“Right now MBSB is not governed by the central bank, and for the last two years we have put in place policies, procedures and requirements to be more like a bank so that when we do it becomes easier,” he said of MBSB’s effort to get recognition as a financial institution.

Any form of corporate exercise involving financial institutions, Zaini said, must get the blessing of Bank Negara Malaysia.

“But this is something in the future, we don’t know yet and it’s really up to the shareholders to push and talk to the relevant authorities.”

In February, The Star reported that the idea of a merger between both lenders was mooted at the shareholder level of both companies, namely the Employees Provident Fund (EPF) and Lembaga Tabung Haji (LTH), according to sources.

“A common factor the two companies have is Samsudin Osman, who is chairman of EPF and BIMB Holdings Bhd – Bank Islam’s listed parent company. BIMB wholly owns Bank Islam, which is its main income generator,” it had reported.

“Because of their common chairman, the two parties have a close relationship,” said sources.

Zaini had also said in an interview with StarBizWeek that for the company to get out of its status as a non-banking institution and to work towards a financial institution platform, it needs to seriously look into a corporate exercise in the very near future.

Zaini had said that it would have to be a marriage between retail and corporate, given that he felt MBSB can contribute more on the latter.

On the other hand, Bank Islam’s managing director Zukri Samat said last year that the bank was open to merger and acquisition candidates that can complement its strengths in consumer banking.

Zaini noted that MBSB has the capabilities to be granted its own banking licence, but this may take a longer journey for it to grow organically into a full-fledged bank.

“But as far as management is concerned, we are looking to strengthen our business model, our readiness and closing of the gaps,” he said last week.

The conversion of MBSB into an Islamic financial institution falls within a five-year plan which was drafted by the company years ago. It recently reactivated this aim after the mega merger fell through.

Meanwhile, MBSB is hoping to see loan growth of 8 per cent this year compared with 3 per cent last year, attributed to the “distraction” caused by the mega merger as the company was unable to implement certain strategies

Merger in 2 years time

Although the potential merger between Malaysia Building Society Bhd (MBSB) and Bank Islam Malaysia Bhd remains market talk, MBSB recently confirmed that a merger with an Islamic financial institution is still on the cards, within this year or next.

Local media reported that MBSB president and chief executive officer Ahmad Zaini Othman reiterated the group’s aspiration to be an Islamic financial institution and with that, the need for it to merge with an Islamic financial entity.

This aspiration is renewed, as the three-way mega merger with CIMB Group Holdings Bhd and RHB Capital Bhd that would have seen MBSB acquired by the two banks’ Islamic banking operations fell through.

However, Zaini noted that MBSB is not actively in talks with any financial institutions on any merger or acquisition at the moment, according to The Edge Financial Daily.

“This kind of thing requires a little bit more study and analysis. But it doesn’t mean that we need to talk to financial institutions to be able to go into that kind of platform.

“We are looking and studying the basis first and get our shareholders to basically think through and they will evaluate and say which is the best decision and we will take it from there,” he told reporters last week after MBSB held its annual general meeting.

He said the critical work was in closing the gap in the operations to be in line with the authorities and the regulatory framework of the central bank.

“Right now MBSB is not governed by the central bank, and for the last two years we have put in place policies, procedures and requirements to be more like a bank so that when we do it becomes easier,” he said of MBSB’s effort to get recognition as a financial institution.

Any form of corporate exercise involving financial institutions, Zaini said, must get the blessing of Bank Negara Malaysia.

“But this is something in the future, we don’t know yet and it’s really up to the shareholders to push and talk to the relevant authorities.”

In February, The Star reported that the idea of a merger between both lenders was mooted at the shareholder level of both companies, namely the Employees Provident Fund (EPF) and Lembaga Tabung Haji (LTH), according to sources.

“A common factor the two companies have is Samsudin Osman, who is chairman of EPF and BIMB Holdings Bhd – Bank Islam’s listed parent company. BIMB wholly owns Bank Islam, which is its main income generator,” it had reported.

“Because of their common chairman, the two parties have a close relationship,” said sources.

Zaini had also said in an interview with StarBizWeek that for the company to get out of its status as a non-banking institution and to work towards a financial institution platform, it needs to seriously look into a corporate exercise in the very near future.

Zaini had said that it would have to be a marriage between retail and corporate, given that he felt MBSB can contribute more on the latter.

On the other hand, Bank Islam’s managing director Zukri Samat said last year that the bank was open to merger and acquisition candidates that can complement its strengths in consumer banking.

Zaini noted that MBSB has the capabilities to be granted its own banking licence, but this may take a longer journey for it to grow organically into a full-fledged bank.

“But as far as management is concerned, we are looking to strengthen our business model, our readiness and closing of the gaps,” he said last week.

The conversion of MBSB into an Islamic financial institution falls within a five-year plan which was drafted by the company years ago. It recently reactivated this aim after the mega merger fell through.

Meanwhile, MBSB is hoping to see loan growth of 8 per cent this year compared with 3 per cent last year, attributed to the “distraction” caused by the mega merger as the company was unable to implement certain strategies

I sold my Cimb and bought Bimb today..good news coming...

Those who attended the agm already know that merger between MBSB and Bank Islam is in progress. But official they keep denying for reason we as shareholders already know... :)

The news is true, because the merger is not initiate by MBSB but by the other side..it's an open denial to avoid MBSB share from surging

Start accumulating MBSB, merger more or less confirm but deny officially to avoid price surge

Compare Takaful revenue of 1.9 billions vs 2.9 billions for BIMB as comparation..... :)

BIMB own 100% Bank Islam after acquired 49% from Dubai Financial Group and LTH....and from 4th quarter last year onward, all earnings of Bank Islam will be reflected in BIMB.....Takaful in the making? :)

BIMB is main component for index syariah

You can buy MSBB or BIMB...but I bought both...wait patiently for formal announcement on merger :)

I bought 2.50 only to see it nosedive futher.....today bought at 2.20...I believe it has hit bottom for the moment...hopefully

:(

I remove my earlier comment Itelex6...you are right...about insider trading thing

Extraordinary high dividend? Not really...actually EPF can afford to give higher but usually EPF is conservative in dishing out dividend...EPF are well managed, compare to our neighbouring Singapore employee funds which surprisingly only give 2.5% yearly if I am not mistaken.
MBSB no value creation? Currently they clientele are government servants with minimal risk of default. However research house have different opinion that sourcing this clientele as high risk. But compare to bigger banks like Maybank, Public Bank which are exposure to corporate clientele, don't you think MBSB yet to tap on their potential? Tapping into Islamic Bank low cost capital, this merger is view as perfect marriage :)

EPF declared high dividend this year.....MBSB just announce special dividend on top of interim dividend...I can't speak for EPF but don't you think this merger will benefit EPF more?

Good morning to you too Duit..probably not but in even MGO is offered, I doubt minority shareholder will accept low offer price. This is interesting development through....let's hope that this merger will materialize soon... angpow to us :)

Even if BIMB offer cash payout to MBSB investors, only small pool of retail investors will want it...EPF opt for share swap

Yup...suspect that EPF will take MBSB private....MBSB and BIMB opt for DRP which benefit LTH and EPF increasing their share holdings....MGO for MBSB at 2.30? And you think EPF want to lose out? Doubt it....probably 2.90 on share swap basis....beside both EPF and LTH are government link bodies

I would rather opt for share swap than cash payout if this merger materialize...majority shareholder of MBSB is EPF and BIMB is LTH...so share swap sounds more on the card... :)

I will buy again if hit 2.00...bought 2.50..just panic selling :)

Haha...can you still get 2.20 this mon?.... :)

Posted by cipapo > Feb 28, 2015 02:20 PM | Report Abuse

I sense sour grapes....well 2.20 is still cheap to buy...don't miss the boat

Who can deny MBSB and BIMB can form synergy in niche Islamic banking?....I think this marriage will go smoothly compare to previous RHB+CIMB+MBSB merger....and MBSB need to tap into BIMB deposit bank while BIMB need MBSB into corporate business....a perfect marriage and this time EPF and LTH definitely into win-win situation..... :)

A perfect marriage MBSB and BIMB......and big angpow for MBSB and BIMB investors too :)

http://www.thestar.com.my/Business/Business-News/2015/02/28/Bank-IslamMBSB-merger-in-the-airIdea-is-being-floated-by-shareholders-of-both-companies-LTH-and-EPF/?style=biz

Big secret finally out....merger between BIMB and MBSB...;)

:).....so the secret is out....yes, I knew about BIMB and MBSB forming a merger...big angpow for us MBSB investors.... :)

Buying back at 2.51 :)

Miconception on DRP here....like Public Bank and BIMB, rather than coming out with cash payout, issuance of shares will retain capital....and share price will gain in future...just need some patience :)

DRP offered by Public Bank and recently BIMB....I am sitting on handsome gains out of BIMB recent DRP....just be patient.... :)

CIMB, BIMB, MBSB are my banking shares....fengshui or not, I already made gains as I bought all weeks ago.. :)

I sold today at 6.00....oh my, should I buy back? Make some under intraday gain? :)

Sold FGV at 2.86...but as I look at the report, 4th quarter report is not bad in fact revenue has increased with margin becoming thin...most research house said that FGV reporting losses which didn't appear so.....mostly panic selling due to misunderstanding...may buy for quick gain

:)

DRP is good for major shareholder like EPF.....and small investor like us can always opt for cash payout....:)

Kenanga recommend sell on MBSB....time to top up? :)

FGV received so many sell calls from rsb-osk, cimb and Kenanga...guess I forgot to read them..lol

Almost reach my selling price of 6.00.... :)

I will only start selling 2.70... :)

You should buy BIMB if below 4.00....Dividend usually may, September and December...however last year special dividend was too high preventing market price to rise...however report will be out next week showing another BIMB for first time breaking 3 billion revenue and revision of target price by funds...let's hope this will happen just like in 2013 :)

Tabung Haji play theme? BIMB? :)

Next week BIMB will announce for the first time revenue exceed 3 billion mark. And dividend will be 3.5%. But market price will hit 5.00 within 2 months time. I received dividends for the past 3 years...and know the price movement...hope this time is the same

What happen when there is no longer resistance? Watch....:)

I can't disclosure now :)

Posted by i3i2i1 > Feb 16, 2015 03:04 PM | Report Abuse

what you meant by major annoucement? what is the diff with report out next week? i expect some push down of price like mbsb before lunch today before push up back

2.27 resistance? :)

Report will be out next week....but major announcement in 35 days...

Closing 2.30? :)

2.25 still resistance? :)

Remember FGV? It's the same operator :)