MCB Bank Limited and Maybank are pleased to announce the signing of agreements today, whereby Maybank will acquire up to 20% of the ordinary shares in MCB Bank Limited (“MCB” or the “Bank”) from Nishat Group. The agreement underlines MCB commitment to enter the next phase of growth by partnering with a leading financial services group thereby expanding its product offering and improving efficiency to better serve its customers. Maybank is the ideal strategic partner given its emerging markets heritage and strong consumer and Islamic banking franchise. For Maybank, the acquisition is in-line with its strategy, as Malaysia’s financial services leader in the region, to build its presence in key growth markets across the region. The transaction represents the largest Foreign Direct Investment into Pakistan in 2008 and the largest ever private sector cross border transaction in Pakistan.

As part of the transaction Maybank will acquire from Nishat Group an immediate 15% stake in the Bank for a purchase price per share of PKR470, subject to necessary approvals. Maybank has the right to increase its stake to 20% after one year.

Maybank is largest bank in Malaysia by assets and by market capitalization. Maybank has total assets of PKR5,394 billion (US$83 billion), equivalent to a market share of approximately 23% of all commercial banks in Malaysia as of December 31, 2007. The Bank has a customer base of approximately 8.1 million, and a nationwide distribution network of 450 branches and 2,478 ATMs as of December 31, 2007.

To facilitate close strategic cooperation, Maybank will have the right over time to appoint two Directors to represent its interest on the Board of MCB and will participate in some of the key management committees.

Chairman of MCB and Nishat Group, Mian Mohammad Mansha, said, “We are extremely delighted to have Maybank, the premier bank and financial group in Malaysia, as our strategic partner in MCB. We are confident that the experience and technical services that Maybank will be able to provide to MCB will further strengthen the Bank as it moves forward to affirm its leading position in the Pakistan banking sector. In particular, we look forward to the expertise that Maybank will be able to provide in consumer and Islamic banking, two of the faster growing segments in the market.”

Commenting on the transaction, the President of MCB, Mr Atif Bajwa, said, “The business cooperation agreement with Maybank will further strengthen our position to capitalise on the growth opportunities in the Pakistan market. We will be able to expand the services we offer our customers and increase efficiencies across our organisation by sharing our partner’s technical expertise in product development and best business practices. We have identified multiple areas of knowledge transfer which will enhance our existing business strategy, particularly in consumer banking, SME banking and Islamic banking. We are excited by the opportunities that our partnership with Maybank opens up for MCB to diversify our earnings streams both domestically and internationally.”

Maybank’s Chairman, Tan Sri Mohamed Basir Ahmad, said, “This acquisition, like our recent announcement on BII, will align Maybank with a highly attractive franchise in a high growth and under-penetrated banking market with a large population. MCB enjoys a leading position in the Pakistan financial sector where it has proven its performance and profitability through consistently high returns on equity and strong net interest margins supported by a low cost funding base.”

Maybank’s President and Chief Executive Officer, Dato’ Sri Abdul Wahid Omar added, “MCB is well-regarded for its established nationwide distribution platform, more innovative products and respected foreign-trained management team. We are excited about MCB’s further growth potential with Maybank alongside as exclusive foreign commercial bank strategic partner.”

As part of the transaction, MCB and Maybank will enter into a business cooperation arrangement which will focus on a number of areas, including Islamic banking, retail banking, credit cards, asset management and SME banking. Leveraging Maybank’s leadership and experience in these segments coupled with MCB’s brand and broad distribution network, the two franchises believe that significant revenue synergies can be attained. Both MCB and Maybank are also expected to benefit from increased business ties and trade flows between Pakistan and Malaysia.

The proposed acquisition is now conditional upon regulatory approvals, including approval from State Bank of Pakistan and Bank Negara Malaysia.

Merrill Lynch acted as advisor to Nishat Group. Aseambankers and JPMorgan acted as advisors to the Maybank Group for the transaction.

MCB Bank Limited
MCB is one of the leading banks of Pakistan incorporated in 1947. MCB was nationalized in 1974 along with all other private sector banks. MCB was privatized in 1991 when Nishat Group bought a majority stake in the bank. MCB’s shares are traded on all three exchanges of Pakistan and its global depositary receipts are listed on the London Stock Exchange.

During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.

Maybank
Maybank was incorporated on 31 May 1960 and commenced operations on 12 September 1960. On 17 February 1962, Maybank was listed on the then Kuala Lumpur Stock Exchange (now known as Bursa Malaysia) and is today one of the largest companies by market capitalization in Malaysia.

Maybank is the largest financial services group in Malaysia and the Group offers a comprehensive range of financial services and products ranging from commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee services, asset management, stock broking, nominee services, venture capital and Internet banking.

The Group has over 450 offices in the 14 countries namely, Malaysia, Singapore, Philippines, Brunei Darussalam, Indonesia, Vietnam, Cambodia, Papua New Guinea, Hong Kong SAR, People’s Republic of China, Bahrain, Uzbekistan, Pakistan, Great Britain and United States of America.