Malaysia’s MBSB Bank has decided to sell its asset management business to Australia’s Salaam group, according to a person familiar with the matter.
The business, MIDF Amanah Asset Management, has just under 1 billion ringgit (US$234.6 million) of assets under management. MBSB, Malaysia’s second largest Islamic bank, inherited the firm when it acquired Malaysian Industrial Development Finance from Permodalan Nasional two years ago.
The person familiar with the matter tells Asia Asset Management (AAM) that the sale to Salaam group is still subject to regulatory approvals.
Local business newspaper The Edge first reported on the sale on July 19, saying that the deal is expected to be completed in a few months.
Headquartered in Sydney, Salaam provides a wide range of financial services, including wealth management and loans.
MBSB issued a request for proposals for MIDF Amanah Asset Management around six months ago, at which point it was also open to a strategic partnership.
According to the person familiar with the matter, it decided on a sale because asset management isn’t a core business for the bank.
Spokespersons for MBSB and Salaam did not immediately respond to questions from AAM.
MIDF Asset Management posted a net profit of 1.12 million ringgit on revenue of 10.34 million ringgit in 2023. The 2024 results haven’t been released yet.