Maybank to sell its operation in Papua New Guinea
Maybank said in a filing with Bursa Malaysia that it had entered into a share sale agreement (SSA) with Kina Ventures Ltd and Kina Securities Ltd of PNG, for the proposed disposal of Maybank’s entire equity interest in Maybank (PNG) Ltd (MPNG) and Mayban Property (PNG) Ltd (MPPNG) to Kina Ventures.
“This decision to dispose of our operations in PNG is a result of strategic reviews carried out regularly at the group to reprioritise our capital and resources with the intention of focusing our growth agenda in target regions where we can achieve the best returns from our investments,” group president and chief executive officer Datuk Abdul Farid Alias (pic) said.
The proposed disposal involves the sale of Maybank’s entire equity interest in MPNG and MPPNG to Kina Ventures for about Kina 319 million (about RM418mil), plus the difference in the value of the net assets of MPNG as at the completion of the proposed disposal compared with Dec 31, 2014.
The proposed disposal is expected to be completed in the second half of this year, upon achieving IT and operational readiness as prescribed in the SSA.
“While we have been operating profitably and successfully in Papua New Guinea over the years, we have had to evaluate how best we can use our capital going forward, especially in light of new and more stringent requirements under the Basel III regime.
“Ultimately, we believe that we can achieve greater value creation for all our stakeholders by re-focusing our resources in the Asean and Greater China region where we can realise greater synergies and achieve better returns on capital investment,” he added.
Despite the SSA, Farid said Maybank would still be committed to serving customers in Papua New Guinea who had cross border requirements.
“Given our vast network in the region and in key international financial centres, Maybank will still be able to provide Papua New Guinea customers with access to markets and financial services around the world,” he added.
Farid also said that the bank would ensure a smooth transition to the new shareholders so that customers could enjoy uninterrupted services.
“We will work with Kina Ventures to ensure that the interest of customers and employees are taken care of throughout the transition period,” he explained.
“Maybank has developed a detailed transition plan together with Kina Ventures and the PNG Central Bank to ensure smooth handover of operations and business continuity post completion of the transaction.”
The disposal will not have any effect on the issued and paid-up share capital as well as shareholdings of the substantial shareholders of Maybank.
It is also not expected to have any material effect on the earnings per share, net assets per share and gearing of the Maybank group for the financial year ending Dec 31, 2015.
Source: The Star Online
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