MIDF said it was informed the central bank has no objection to MIDF and its single shareholder Permodalan Nasional Bhd (PNB) to start talks with Al Rajhi Banking & Investment Corporation.
Al Rajhi Bank is one of the world’s largest Islamic banks by capital. It is a major investor in Saudi Arabia, with over SR330.5 billion (RM361 billion) in Assets Under Management (AUM).
Its head office is located in Riyadh, with six regional offices.
“The negotiations must be completed within three months from the date of the letter issued by Bank Negara,” said MIDF in a statement.
MIDF said this should not be seen as an indication that a final merger agreement will be reached or that Bank Negara has approved the merger.
“MIDF will have to obtain prior approval from Bank Negara or the Minister of Finance, with the recommendation of Bank Negara, as the case may be, pursuant to the Islamic Financial Services Act 2013 and the Financial Services Act 2013 before entering into any agreement to effect the proposed merger.
“If an agreement is achieved, it will also be subject to various conditions, including all relevant legal requirements and the approval of all regulatory authorities involved, in both Malaysia and the Kingdom of Saudi Arabia,” it said.