MBSB active, jumps 10.81% on buying Asian Finance Bank

\KUALA LUMPUR (Nov 7): Shares in Malaysia Building Society Bhd (MBSB) jumped 10.81% this morning after MBSB said it is buying the entire interest in Asian Finance Bank (AFB) for RM644.95 million.

At 9.02am, MBSB rose 12 sen to RM1.23 with 3.19 million shares traded.

The purchase will be satisfied via RM396.89 million in cash and an issuance of 225.51 million new ordinary shares in MBSB at RM1.10 apiece.

The proposed issue price represents a one sen discount to MBSB’s closing price of RM1.11 last Friday, and will enlarge MBSB’s share base by 225.51 million shares.

MBSB signed a conditional share purchase agreement with AFB’s shareholders Qatar Islamic Bank, RUSD Investment Bank Inc and Tadhamon International Islamic Bank, and Financial Assets Bahrain WLL to effect the acquisition today. The proposed merger is expected to be completed in the first quarter of 2018. —

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