MALAYAN Banking Bhd (Maybank) is set to acquire 8.34 million shares, equivalent to 20% of the expanded issued share capital of Maybank Asset Management Group Bhd (MAMG), from Permodalan Nasional Berhad (PNB) for RM70.39 million in cash.
The acquisition agreement was formally announced today in a bourse filing, following a conditional share sale agreement between Maybank and PNB.
The agreement signifies the culmination of a process that began with PNB’s subscription to the MAMG shares back in May 2018.
As part of the original agreement, PNB was granted a put option, allowing them to require Maybank to purchase all of the MAMG shares held by PNB at a price determined by an expert.
Once the transaction is completed, MAMG will become a wholly-owned subsidiary of Maybank, further consolidating the bank’s reach in the financial sector.
The purchase price of RM70.39 million was determined by PricewaterhouseCoopers Capital Sdn Bhd (PwC Capital), using the market approach, which considered a comparative analysis based on the implied price-to-assets-under-management multiple of selected comparable transactions.
The purchase consideration will be satisfied in cash and funded by internally generated funds.
The acquisition is expected to have several key implications, which include enhancing Maybank’s position in the asset management sector.
It will further diversify Maybank’s portfolio, providing clients with a broader array of financial products and services.
The acquisition will also have an impact on the share capital of Maybank and the substantial shareholders’ shareholding, as it does not involve the issuance of new ordinary shares.
It will also not significantly affect the net assets per Maybank Share or its gearing.
Additionally, it is not expected to have a substantial impact on Maybank’s earnings or earnings per Maybank Share for the fiscal year ending on December 31, 2023.
In light of this acquisition, it’s important to note that several major shareholders and individuals connected to them are involved in this transaction.
Amanah Saham Bumiputera (ASB), with approximately 31.03% direct equity interest in Maybank as of October 12, 2023, is a major shareholder. PNB, as the investment manager of ASB, is connected to ASB.
Additionally, two Maybank directors, Tan Sri Datuk Sri Zamzamzairani Mohd Isa and Cheng Kee Check, are nominated to the board by PNB and have abstained and will continue to abstain from all deliberations related to the proposed acquisition.
The transaction is expected to conclude in the fourth quarter of 2023. – TMR / pic TMR FILE