AMMB Holdings Bhd is acquiring the entire stake in MBF Cards (Malaysia) Sdn Bhd for RM623.4 million, as part of its strategy to enhance its card issuance business through enlarged merchant network and increase in receivables.

The group said the businesses to be acquired under the proposed acquisition include cards issuing, merchant acquiring and bill payments business under Visa and MasterCard licences.

The group will also acquire MBF Cards' ownership of 33.33 per cent in Bonuskad Loyalty Sdn Bhd's shares, it said in a statement.

The transaction, pending Bank Negara and vendor shareholders' approval, is expected to be completed before end-December.

Group Chairman Tan Sri Azman Hashim said the acquisition would not only enhance the profile of its merchant acquiring but also fits well with its retail banking strategic priorities and aspirations.

This include stronger customer centricity, accelerating deposit growth and non-interest income, building wealth management and growing quality assets in targeted segments, he said.

Meanwhile, Group Managing Director Ashok Ramamurthy said card receivables would increase to RM2.3 billion.

Through Bonuskad acquisition, the bank would also have access to seven million customer database of the Bonuslink loyalty card, which would present good cross-selling opportunities, he added. -- Bernama