It’s confirmed.
Singapore investment arm, Temasek Holdings had signed an agreement to buy a stake in Malaysian Plantations Berhad (MPlant), which controls one of the country smallest lenders, Alliance Bank.
Under the deal, MPlant confirmed that shareholder Langkah Bahagia Sdn Bhd, a company linked to Former Finance Minister Tun Daim Zainuddin, had agreed to sell at 15.37% stake, comprising 178.7 million shares and 59.58 million warrants, in MPlant to Vertical Theme Sdn Bhd.
Langkah Bahagia signed the agreement with Duxton Investments, a wholly owned subsidiary of Asia Financial Holdings, which in turn is wholly owned by Temasek. As a result, Duxton will hold 49% in Vertical Theme and Langkah Bahagia hold the balance 51%. The share sale to the venture ensures that Langkah Bahagia still holds majority control over the MPlant stake.
The transaction is yet another sign the relations between Singapore and Malaysia are improving. A few years ago, such a deal would have been blocked.
Subsequently, Temasek’s interest in MPlant first emerged in February 2004 as Malaysia-Singapore ties warmed following Malaysian Prime Minister’s Tun Mahathir Mohamed retirement.
Significantly, the deal is now materialized and marks Temasek’s entry into Malaysia’s banking sector.
It’s time for Made in Malaysia banks to buck up or else gradually losing market share to the competitors.
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