The Board of Directors of Malayan Banking Berhad (“Maybank”) wishes to announce that Maybank, has on 18 May 2015 entered into a share sale agreement (“SSA”) with Kina Ventures Limited (“Kina Ventures”) and Kina Securities Limited, for the proposed disposal of Maybank’s entire equity interest in Maybank (PNG) Limited (“MPNG”) and Mayban Property (PNG) Limited (“MPPNG”) to Kina Ventures (“Proposed Disposal”).

The Proposed Disposal involves the sale of Maybank’s entire equity interest in MPNG and MPPNG to Kina Ventures for a total cash consideration of approximately Kina 319 million (equivalent to approximately RM418 million based on the exchange rate of Kina 1 = RM1.31 as at 18 May 2015), plus the difference in the value of the net assets of MPNG as at the completion of the Proposed Disposal compared to 31 December 2014. The completion of the Proposed Disposal is expected to occur in the second half of 2015, upon achieving IT and operational readiness as prescribed in the SSA.

MPNG and MPPNG were incorporated in Papua New Guinea and are involved in commercial banking activities and property investment respectively. The Proposed Disposal is undertaken as part of Maybank’s continuous effort to evaluate its international operations with a specific focus on maximising capital use as well as optimising resources in the most efficient manner.

The Proposed Disposal is subject to the approval of the Bank of Papua New Guinea, which was obtained on 12 May 2015. MPNG and MPPNG will cease to be subsidiaries of Maybank with effect from the completion of the Proposed Disposal.

The Proposed Disposal will not have any effect on the issued and paid-up share capital and shareholdings of the substantial shareholders of Maybank, and it is not expected to have any material effect on the earnings per share, net assets per share and gearing of the Maybank Group for the financial year ending 31 December 2015.

None of the directors and/or major shareholders of Maybank, and/or persons connected to them, have any interest, direct or indirect in the Proposed Disposal.

This announcement is dated 18 May 2015.