Maybank explains sale

 THE Malayan Banking Bhd (Maybank) is selling its operations in PNG as it focuses its efforts and resources to expand in markets in Asean and greater China.

Maybank, Malaysia’s biggest bank, told the Malaysian stock exchange on Monday that it had entered into a share sale agreement with Kina Ventures Ltd and Kina Securities Ltd of PNG, for the proposed disposal of Maybank’s entire equity interest in Maybank (PNG) Ltd and Maybank Property (PNG) Ltd to Kina Ventures.

The proposed disposal involves the sale of Maybank’s entire equity interest for its two entities to Kina Ventures for a total cash consideration of about K319 million, plus the difference in the value of the net assets of Maybank PNG as at the completion of the proposed disposal compared to Dec 31, 2014.  

It is expected to be completed in the second half of this year.

Group president and chief executive officer Datuk Abdul Farid Alias said the bank would ensure a smooth transition to the new shareholders to ensure uninterrupted services.

“We will work with Kina Ventures Ltd to ensure that the interest of customers and employees are taken care of throughout the transition period,” he said. “Maybank has developed a detailed transition plan with Kina Ventures Ltd and the PNG Central Bank to ensure the smooth handover of operations and business continuity post completion of the transaction.

“This decision to dispose of our operations in PNG is a result of strategic reviews carried out regularly at the group to re-prioritise 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.”