Maybank buys 15pc shares in MCB for $667m

KARACHI - Malaysia's largest bank, Maybank, has acquired 15 per cent of one of the major Pakistani banks, MCB Bank, shares for $667million, it was confirmed here.

By (By a correspondent)

Published: Sun 29 Jun 2008, 11:48 PM

Last updated: Sun 5 Apr 2015, 1:13 PM

Karachi Stock Exchange (KSC) had confirmed the sale of 15 per cent shares of MCB Bank and the deal was finalised last month.

Country's banking regulator, State Bank of Pakistan (SBP) also confirmed that Maybank had remitted $667 to Pakistan on June 23.

According to the agreement between the two parties Maybank would also buy another five per cent shares of MCB Bank next year. The deal is the largest undertaken by any bank in Pakistan.

The Malaysian bank has bought the MCB shares at 5.1 times book value and 15 times Karachi-based bank's earnings in 2008. It is the first Malaysian investment in the financial sector of Pakistan.

The transaction of $667 million represents the largest foreign direct investment into Pakistan in 2008 and the largest-ever sector cross-border transaction in the country.

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