ANZ to pay RM4.30 per AMMB share
Australia and New Zealand Banking Group Ltd (ANZ) is paying a hefty premium of 40% at RM4.30 per share to acquire an additional stake in AMMB Holdings Bhd, bringing its total interest to 24.9%.
ANZ yesterday agreed to buy 11.4% of AMMB from AmcorpGroup Bhd, which is controlled by Tan Sri Azman Hashim (pic), for US$356 million (RM1.29 billion) at the premium of RM1.25 per share over Nov 29’s closing price of RM3.06.
The average price paid for the 24.9% would be RM3.625 a share, for a total of RM2.35 billion.
This follows an agreement last week for the Australian bank to take a 13.5% stake in AMMB at RM3.05 a share translating to a total of RM1.06 billion.
ANZ and Azman formalised the latest deal on the sidelines of the Eighth Malaysia-Australia Business conference in Kuala Lumpur on Nov 30, which was also graced by Australian Prime Minister John Howard.
This makes ANZ, which is Australia’s third-biggest lender, the largest shareholder in AMMB, boosting its presence in Asia. AMMB is Malaysia’s fifth largest financial institution.
In a statement on Nov 30, AmBank Group said the price was at a premium to reflect the dilution of Amcorp’s controlling interest in AMMB from 32.9% to 18.8% and ANZ’s active involvement at the board and management levels of AMMB.
It said the proposed equity participation would provide the group with the capital infusion to strengthen its balance sheet and enhance its banking operations in the local and international markets.
“The proposed transaction will enable ANZ to increase its stake in AmBank Group to a meaningful level, making it a long-term strategic partner which will contribute significantly to the business direction and strategies of the group,” it said.
It said the latest transaction would allow Amcorp to raise proceeds of RM1.29 billion to pare debts while retaining a significant holding of AMMB in line with Bank Negara Malaysia’s requirement for Amcorp to institutionalise its shareholdings in AMMB by May 2007.
Azman, who is AmBank group chairman, said ANZ’s international best practices as well as exposure to international products, banking systems and cross-border capabilities in Asia would create a unique growth opportunity for both parties.
“The partnership will also provide a strong foundation for advancing AmBank’s strategy to be one of Malaysia’s premier consumer and business-focussed banks,” he said.
