Maybank today announced that it has completed the sale of its entire equity interest in Maybank (PNG) Limited (MPNG) and Mayban Property (PNG) Limited (MPPNG) to Kina Ventures Ltd pursuant to the share sale agreement (SSA) entered into on 18 May 2015
Effective 1st October 2015, MPNG and MPPNG will cease to be subsidiaries of Maybank. The sale was undertaken following approval from the Central Bank of Papua New Guinea.
Group President and CEO of Maybank, Datuk Abdul Farid Alias congratulated Kina Ventures Ltd on becoming an integrated financial service provider in Papua New Guinea upon successful completion of this transaction.
“We have worked diligently to ensure that the transition was smooth for our customers so that they continue to enjoy the same range of services without any disruption to their accounts, facilities and banking relationships,” he explained. “The whole exercise was made possible owing to the support from all stakeholders and Maybank would like to record our appreciation to all our customers, employees, regulatory authorities and business partners for the cooperation and understanding throughout the period, as well as their support over the years.”
He added that although the Group will no longer have on-ground operations in Papua New Guinea, Maybank will continue to support clients from PNG who have business or personal banking dealings in the region as well as facilitate transactions into PNG from across Maybank’s global network.
The disposal of MPNG and MPPNG was announced as part of Maybank Group’s evaluation of its international operations with a specific focus on maximising capital use as well as optimising resources.
This involved the sale of the entire equity interest in MPNG and MPPNG respectively for a total cash consideration of Kina 352.8 million (equivalent to approximately RM546.8 million based on the exchange rate of Kina 1 = RM1.55 as at 30 September 2015). Following a completion audit, a purchase price adjustment shall be made to reflect the changes to the net asset value of MPNG to the completion date.
Maybank established operations in PNG in 1994 serving the local community and cross-border clients, and has been operating profitably and successfully in Papua New Guinea over the years.
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 31 December 2015.