Malayan Banking Berhad ("Maybank" or "the Company") - Proposed acquisition by Maybank of approximately 15% of the total Charter Capital of An Binh Bank ("ABBank")

Mar 21, 2008 Back
Type Announcement
Subject Malayan Banking Berhad (“Maybank” or “the Company”) - Proposed acquisition by Maybank of approximately 15% of the total Charter Capital of An Binh Bank (“ABBank”)
Contents Proposed acquisition by Maybank of approximately 15% of the total charter capital of ABBank for a total cash consideration of approximately Vietnam Dong (“VND”) 2.1 trillion or the equivalent of approximately RM430 million (“Proposed Acquisition”).
1. INTRODUCTION
    The Board of Directors of Maybank (“Board”) is pleased to announce that the Company had on 21 March 2008 entered into a subscription agreement (“SA”) with ABBank for the subscription by Maybank of approximately 15% of the total charter capital of ABBank (“Charter Capital”) for a total cash consideration of approximately VND2.1 trillion or the equivalent of approximately RM430 million.

    Upon completion of the SA, Maybank will emerge as a major shareholder of ABBank.


2. THE PROPOSED ACQUISITION

    Pursuant to the SA, Maybank shall be entitled to subscribe for approximately 15% of the total paid-up Charter Capital of ABBank for a total cash consideration of approximately VND2.1 trillion or the equivalent of approximately RM430 million, on or before 31 December 2008.

    In addition, subject to the approval of the relevant authorities that would permit Maybank to be the owner of up to 20% equity interest in ABBank, Maybank shall also subscribe for additional shares of par value in ABBank of up to 5% of the total paid-up Charter Capital as at that date, on or before 31 December 2009.

    On the same date, Maybank also entered into a strategic cooperation and knowledge transfer agreement (“Commitment Agreement”) with ABBank to provide technical assistance in consumer banking, network, treasury, business banking, risk management, human resource, information technology and corporate governance. ABBank will provide Maybank with the infrastructure, facilities, logistics, support and resources in Vietnam. The Commitment Agreement reflects the long term relationship and strategic cooperation between Maybank and ABBank.


3. BACKGROUND INFORMATION ON ABBANK
    ABBank was established in 1993 and its principal activities are to provide commercial banking services to corporate, individual and credit institutions.

    Currently, ABBank has fifty three (53) branches and transaction offices spread across twenty one (21) key provinces and cities across Vietnam.

    The Electricity of Vietnam (“EVN”) Group is ABBank’s largest shareholder with a 28.3% equity interest in ABBank. The other major shareholder is The Hanoi Export-Import JSC (Geleximco), which holds 7.2% equity interest in ABBank.

4. RATIONALE FOR THE PROPOSED ACQUISITION
    The Proposed Acquisition is a strategic investment for Maybank to expand its presence in the Vietnam market and is in line with its continuous effort to establish a strong foothold in the regional markets.

    The Proposed Acquisition will accelerate Maybank’s growth plans in Vietnam and open up opportunities for the Maybank Group in capturing a share of the rapidly growing small and medium enterprise sector in Vietnam and to penetrate the mass market with more innovative retail products and services at a lower cost.
5. APPROVALS REQUIRED
    The Proposed Acquisition is subject to the approval of the following:

    Bank Negara Malaysia, if required;

    the shareholders of ABBank; and
    any other relevant authorities including the State Bank of Vietnam or other authorities in Vietnam.


6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
    None of the Directors or major shareholders of Maybank or persons connected to them have any interest, direct or indirect in the Proposed Acquisition.


7. DIRECTORS’ STATEMENT
    The Board, after having considered all aspects of the Proposed Acquisition, is of the opinion that the Proposed Acquisition is in the best interest of the Company.


PRESS RELEASE
    The press release in relation to the Proposed Acquisition is attached with this announcement.


This announcement is dated 21 March 2008.

 

Announcement Info

Company Name MALAYAN BANKING BERHAD  
Stock Name MAYBANK    
Date Announced 21 Mar 2008  
Category General Announcement
Reference No MB-080321-59856

Attachments

  1. MAYBANK210308.doc (Size: 34,304 bytes)