AMMB Hldgs (1015) to acquire MBF Cards (1236) for RM623m

by **hlk** Wed 11 Jul 2012, 01:00

AMMB Holdings Bhd is acquiring the entire stake in MBF Cards (Malaysia)
Sdn Bhd for RM623.4 million, as part of its strategy to enhance its
card issuance business through enlarged merchant network and increase
in receivables.

The group said the businesses to be acquired under the proposed
acquisition include cards issuing, merchant acquiring and bill payments
business under Visa and MasterCard licences.

The group will also acquire MBF Cards' ownership of 33.33 per cent in Bonuskad Loyalty Sdn Bhd's shares, it said in a statement.

The transaction, pending Bank Negara and vendor shareholders' approval, is expected to be completed before end-December.

Group Chairman Tan Sri Azman Hashim said the acquisition would not only
enhance the profile of its merchant acquiring but also fits well with
its retail banking strategic priorities and aspirations.

This include stronger customer centricity, accelerating deposit
growth and non-interest income, building wealth management and growing
quality assets in targeted segments, he said.

Meanwhile, Group Managing Director Ashok Ramamurthy said card receivables would increase to RM2.3 billion.

Through Bonuskad acquisition, the bank would also have access to
seven million customer database of the Bonuslink loyalty card, which
would present good cross-selling opportunities, he added. -- Bernama