MBSB's share price up 2.36% on news of approval for proposed merger with AFB

PETALING JAYA: Malaysia Building Society Bhd's (MBSB) share price rose 2.36% on news of it receiving regulatory approval for its proposed merger with Asian Finance Bank Bhd (AFB).

At 10.30am today, its share price rose 3 sen to RM1.30 on 16.75 million shares traded, making it one of the top actively traded stocks this morning. Its shares fell one sen to close at RM1.27 on Friday, with some 1.59 million shares done.

Last Friday, MBSB told Bursa Malaysia that it had received notification from Bank Negara Malaysia vide its letter dated Aug 18, that the Minister of Finance has granted approval for the proposed acquisition by MBSB of 100% interest in AFB shares pursuant to the Islamic Financial Services Act 2013.

The proposed merger will create the second largest Islamic bank in the country with total assets of around RM48 billion.

MBSB aims to become an Islamic financial institution by 2020 through its merger with AFB. The full bank licence will allow MBSB to tap into new financial services segments which it cannot offer at the moment, such as trade facilities, collecting current account savings account (CASA) deposits and offering other interbank instruments to expand its business.