AMMB to acquire MBF Cards

AMMB Holdings Bhd's plan to acquire the entire stake in MBF Cards for RM623.4 million pushed MBf Holdings Bhd's share price by three sen to RM1.04.

This is part of AMMB's strategy to enhance its card issuance business through an enlarged merchant network and an increase in receivables.

Under the acquisition plan, the group will acquire businesses, including cards issuing, merchant acquiring and bill payments 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.

However, AMMB's share price fell, one sen to RM6.47. HwangDBS Vickers Research in a note today said through the acquisition, MBF Cards would contribute 3.0 per cent to AMMB's earnings and less than 1.0 per cent of total loans.

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