Malaysian International Development Finance Bhd (MIDF), will buy the merchant banking arm of Utama Banking Group Bhd for 150 million ringgit, or $39.5 million, a business weekly reported on Sunday.
Quoting industry sources, the Edge said MIDF would buy Utama Merchant Bank Bhd at about 1.5 times its current book value.
MIDF announced last October it was in talks with Utama Banking to buy the merchant bank.
MIDF's Group Chief Executive Mohd Sallehudin Othman told the Edge the firm has completed negotiations and finalised the terms of the acquisition.
MIDF submitted its proposal for the acquisition to the central bank in December for approval, he said.
MIDF, a financial services group with interests in stock-brooking and fund management, has been looking to buy a merchant bank to turn it into an investment banking group.
MIDF shares ended down 2.6 percent on Friday at 1.51 ringgit, while Utama Banking was 3.4 percent lower at 1.14 ringgit.
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