Maybank newest Investment cost RM2.17bil

When you flip your today The Star newspaper, in business section you will see Maybank has a new "move", I had been observing Maybank these few months, this company had been making a lot of investment in the past 6 months, although recently there is a case that Maybank made loss, which is very BIG but it did not affect the shareholders, not sure how true is that.

Today we will see Malayan Banking Bhd bought a 15% stake in Pakistan’s fourth largest bank MCB Bank Ltd, previously known as Muslim Commercial Bank Ltd, at the total price of RM2.17bil cash! HUGE liquid asset gone to long term investment. Won't that made their ratio bad? Well seriously it does, but not that bad, in fact it help to boost up the share prices since Maybank kept making investment, utilizing their cash at the max level, investors will have a different view on it.

In addition, Malayan Banking Bhd will acquire another 5%, which eventually make it a major shareholder in MCB Bank Ltd. MCB Bank has approximately RM20.2bil worth of assets, hence it's a very strong company.

Seriously how well will this decision come out? Will it be like the previous case where they made loss? I seriously had no idea cause I am not the expert analyst that can predict the economics. Investing into other regional is very risky, but in return the shareholders who hope for high dividends will be distributed from the high return made from the risky investment.

Source : The Star





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