MBSB suspended on Monday pending announcement on merger deal with Asian Finance Bank

PETALING JAYA: Trading in Malaysia Building Society Bhd (MBSB) will be suspended on Monday pending a material announcement on its proposed merger with Asian Finance Bank (AFB).

"As such, all structured warrants relating to MBSB will also be suspended at the same time," it said in a filing with the stock exchange.

Recall that MBSB had in August received Bank Negara Malaysia (BNM) and the Finance Ministry's approval for the proposed acquisition of the entire stake in AFB 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.

AFB, a full-fledged Islamic bank that was incorporated in November 28, 2005, has a branch each in Kuala Lumpur and Johor Baru as well as a representative office in Jakarta, Indonesia, according to its website.

MBSB shares gained 1 sen or 0.9% on Friday, with some 2.4 million shares changing hands.