Malaysia‘s top lender, Malayan Banking Berhad, said MondayMay 5, 2008 it plans to buy up to 20 percent of Pakistan’s MCB Bank Ltd. for $933 million as part of an aggressive regional expansion. It marks the third regional acquisition in two months for Malayan Banking, widely known as Maybank, as it seeks to counter slowing economic growth in Malaysia and increased competition in the domestic financial market.
In a statement, Maybank said it has agreed to buy 15 percent of MCB Bank, Pakistan’s fourth largest bank in terms of assets, for $686 million. In addition, it said it has the rights to buy an additional five percent equity in MCB Bank for a maximum $247 million to bring its stake to 20 percent.
« It is an attractive opportunity for us to enter a high growth and profitable market. It is extending Maybank’s reach in South Asia » in line with its plan to become a key regional player, Maybank Chief Executive Abdul Wahid Omar told reporters. Despite volatility in the global market, Pakistan’s economic outlook remains steady and there is « limited execution risk, » he said. Maybank expects the deal to be completed by the end of June 2008, he said.
Islamic banking, retail services, credit cards and small medium enterprise banking will be key partnership areas with MCB Bank, the Maybank statement said. MCB Bank has 1,026 branches and employs 17,000 workers.
In March 2008, Maybank announced plans to acquire Indonesia’s sixth largest bank, Bank Internasional Indonesia, as well as a 15 percent stake in Vietnam’s An Binh Bank.
The Associated Press, May 5, 2008
Maybank was incorporated on 31 May 1960 and commenced operations on 12 September 1960. On 17 February 1962, Maybank was listed on the then Kuala Lumpur Stock Exchange (now known as Bursa Malaysia and today is one of the largest company by market capitalization in Malaysia. Maybank is the largest financial services group in Malaysia and the Group offers a comprehensive range of financial services and products ranging from commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee services, asset management, stock broking, nominee services, venture capital and Internet banking. The Group has over 450 offices in the 14 countries namely, Malaysia, Singapore, Philippines, Brunei Darussalam, Indonesia, Vietnam, Cambodia, Papua New Guinea, Hong Kong SAR, People’s Republic of China, Bahrain, Uzbekistan, Pakistan, Great Britain and United States of America.
MCB is a leading private sector bank in Pakistan, offering a wide range of products and services to corporate and retail customers through a variety of delivery channels. It has a network of nearly 1,020 branches, including eight Islamic banking branches within Pakistan and six overseas.
PT Bank Internasional Indonesia Tbk is one of the largest banks in Indonesia, with over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai, and the Cayman Islands.