Malaysian Building Society Bhd share price declines after Bank Muamalat merger is called off

Malaysian Building Society Bhd share price declines after Bank Muamalat merger is called off

KUALA LUMPUR, Feb 2 — The share price of Malaysia Building Society Bhd (MBSB) eased after a proposed merger with DRB-Hicom Bhd’s Islamic banking entity was officially called off.

At 3.29 pm, MBSB shares were three sen lower at RM1.42 with 407,500 shares changing hands while DRB-Hicom’s share price perked one sen to RM1.05 with 318,200 units traded.

MBSB President and Chief Executive Officer Datuk Ahmad Zaini Othman said MBSB, DRB-Hicom and Khazanah Nasional Bhd have decided to end the negotiations as the parties concerned could not reach an agreement on the terms and conditions of the proposed merger after a series of discussions and negotiations.

“All parties have diligently been working towards formulating a position that would best strengthen the new merged entity as well as serve the best interests of all shareholders.

“Unfortunately despite these efforts, we were not able to commonly agree on that position,” he said in a filing to Bursa Malaysia today.

The negotiations was first given the deadline of Dec 31 last year by Bank Negara Malaysia to be concluded but the parties involved submitted, and was granted, a month’s extension which ended today.

— BERNAMA

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