MIDF gets nod for merger talks with Al Ra­jhi

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Bank Ne­gara has given its ap­proval for the talks to merge Malaysian In­dus­trial De­vel­op­ment Fi­nance Bhd (MIDF) with Al Ra­jhi Bank­ing & In­vest­ment Corp (M) Bhd.

MIDF said it had re­ceived a let­ter from the cen­tral bank say­ing that the lat­ter has no ob­jec­tions for MIDF and its sole share­holder, Per­modalan Na­sional Bhd (PNB), to start talks with Al Ra­jhi Bank­ing & In­vest­ment Corp for the pro­posed merger.

“The ne­go­ti­a­tions must be com­pleted within three months from the date of the let­ter is­sued by Bank Ne­gara,” it said in a state­ment.

MIDF said this should not be con­strued as im­ply­ing that a fi­nal merger agree­ment would be reached or that Bank Ne­gara has ap­proved the merger.

“MIDF will have to ob­tain prior ap­proval from Bank Ne­gara or the Fi­nance Min­is­ter, 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 Saudi Ara­bia.”

MIDF group man­ag­ing di­rec­tor Datuk Charon Mokhzani said: “We are grate­ful for the ap­proval from Bank Ne­gara for us to start ne­go­ti­a­tions.

“We look for­ward to hav­ing fruit­ful dis­cus­sions with Al Ra­jhi Bank­ing & In­vest­ment Corp, the King­dom of Saudi Ara­bia, and to a mu­tu­ally ben­e­fi­cial out­come.”

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