The acquisition, expected to be completed next month, will see MBSB emerge as the second-largest standalone Islamic bank after Bank Islam Malaysia Bhd, which has assets of RM89.85 billion.

The purchase of MIDF will be satisfied via the issuance of 1.05 billion MBSB shares at 96.52 sen per share.

Following the acquisition, MIDF will become a wholly owned subsidiary of MBSB, and PNB will emerge as a substantial shareholder of MBSB with a 12.78% stake.

In the process, EPF shareholdings in MBSB will be reduced from 65.87% to 57.45%.

At the EGM, MBSB’s recently-appointed group CEO Rafe Haneef said the merger will expand MBSB’s banking spectrum.

He said this will be the beginning of a new and enlarged banking group that caters for longer customer segments across three main business verticals – consumer banking, commercial banking and corporate banking.

MBSB previously said the acquisition would bring together two banking groups with a combined capital base of approximately RM10.69 billion and assets of approximately RM61.73 billion as at the financial year ended Dec 31, 2022.

The deal is expected to be completed in the third quarter of 2023, subject to the approval of MBSB shareholders, the Securities Commission Malaysia and Bursa Malaysia Securities.

MBSB’s shares were unchanged at 78 sen at 4.44pm today, valuing the group at RM5.56 billion.