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| Malaysia's Maybank moves into Pakistan |
KUALA LUMPUR, May 6 (Xinhua) -- Malaysia's largest commercial bank, MALAYAN Banking Bhd (Maybank), is buying 15 percent of MCB Bank Ltd, the fourth largest bank in Pakistan, for 686 million U.S. dollars, local media reported on Tuesday.
Maybank may also pay up to 247 million U.S. dollars for another5 percent after a year, the bank's new president and chief executive officer, Abdul Wahid Omar, said at a media briefing in Kuala Lumpur on Monday.
"It gives Maybank the chance to form an exclusive strategic partnership with one of the best banks in Pakistan with strong growth potential," the New Straits Times quoted Wahid as saying.
The all-cash deal will be financed through a mix of internal and external funds, and Maybank will raise more money to restore its capital ratios, Wahid said.
Wahid did not disclose how much it plans to raise, but said Maybank wants to bring its Tier-1 capital ratio back to around 7 to 8 percent and aims for a total capital ratio of 11-12 percent.
The fund-raising plan will be announced by the end of next month, he added.
The purchase will not affect Maybank's 60 percent dividend payout ratio for now, but it may soon review its dividend policy, Wahid said.
"This acquisition will align Maybank with a highly attractive franchise in a high-growth and under-penetrated banking market with a large population," Maybank Chairman Mohamed Basir Ahmad said.
The purchase will contribute to Maybank's profits immediately after its completion next month. Based on last year's earnings, MCB would contribute 5 percent to Maybank's pre-tax profit.
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