New Straits Times - Bank Pembangunan completes merger with Danajamin
Kuala Lumpur, 21 March 2023
Bank Pembangunan Malaysia Bhd (BPMB) has completed its merger with Danajamin Nasional Bhd.
This followed the transfer of Danajamin's business and undertakings to BPMB effective from March 1, the bank said today.
The merger began in September 2021 with agreements signed between BPMB and Danajamin's then-shareholders, Credit Guarantee Corporation Malaysia Bhd and Minister of Finance (Incorporated) for the 100 per cent acquisition of the financial guarantee insurer. Since then, the merged entities have been successfully integrated.
"The integration included establishing a unified leadership team, redefining BPMB Group's purpose, aspirations and core values, and harmonising processes and systems, as well as employee benefits.
"Following the completion of the Business Transfer Scheme earlier this month, the merger formally concluded with the surrendering of Danajamin's licence to Bank Negara Malaysia on March 6 2023," BPMB said.
The merger was part of the government's medium-term plan to strengthen and align the mandates of development financial institutions (DFIs) to improve the national development finance ecosystem.
BPMB Group chairman Tan Sri Nazir Razak said the integration was the first step towards a stronger and more streamlined development DFI sector in Malaysia, better placed to support businesses and targeted economic sectors.
"BPMB stands ready to move forward with further mergers, at the government's direction," he added.
BPMB Group chief executive officer Roni Abdulwahab said: "It is an exciting time for everyone in BPMB, as the completion of this merger coincides with our 50th anniversary." Roni added that the group had been providing impact capital for national development since 1973.
"Now as a united entity, we will leverage on our combined experience, expertise and diversity to serve our purpose and customers better."