By Delly Waigeno – EM TV, Port Moresby
PNG’s largest non-banking financial institution, Kina Group, has entered into an agreement with Malayan Banking Berhard (Maybank Group), to buy its one hundred percent owned PNG operating subsidiary, Maybank PNG Limited.
The acquisition will see Kina Group become PNG’s fourth largest bank.
Kina Group will pay approximately K319 million, plus the difference in the value of the net assets of Maybank PNG at the completion of the proposed acquisition, compared to 31st December, 2014.
Kina Group Chief Executive Officer, Syd Yates, said that the acquisition would give both Maybank PNG and Kina Group customers access to a broader range of banking and financial services products from under the one roof.
Maybank has provided a full range of commercial banking activities in Papua New Guinea since 1994. Branches in Port Moresby and Lae deliver full commercial banking services, and also provide products and advisory services in the timber and fisheries sectors.
Mr Yates said, Maybank PNG’s business provided a natural fit to Kina, enabling it to extend its reach in PNG’s financial sector market with an established and profitable company that had all necessary licences and an established client base.
More on this story on the EMTV National News Bulletin this evening.