KARACHI, May 3: Malaysia’s Maybank has signed an agreement to acquire 15 per cent shares of the MCB Bank which may yield a sum of about $700 million for the bank, banking sources said.

The MCB Bank officials avoided comments, but said an announcement is expected on Monday.

The Maybank has arranged a press conference in Kuala Lumpur on Monday to announce the deal, signed in Lahore.

Banking sources said the deal was kept secret because both are listed companies in their respective stock exchanges.

The sources said a delegation of the Maybank was in Lahore to sign the agreement to purchase a significant share in the MBC Bank which is one of the largest and highest profit-earning banks of the country.

Although officially the price per share could not be confirmed, sources said it was around Rs470, while a senior banker quoted it at Rs500.

“Even if the rate of Rs470 is considered, the deal will bring about $660 to $700 million in the country,” the banker said.

The two banks have been in contact for a couple of years, and a number of Malaysian news sources have been reporting about the deal between the MCB Bank and the Maybank, but officially it was never confirmed.

During the last three years, the country witnessed a boom in the banking industry, and major foreign banks found potential to exploit opportunities in this sector.

So far, the Standard Chartered has acquired the Union Bank; ABN Amro signed deal with Prime Bank; NIB Bank acquired Picic Commercial Bank and a Middle East investment group acquired the Saudi-Pak Commercial Bank.

The MCB Bank emerged as most successful bank during the last five years. In 2007, the MCB Bank’s Earning Per Share was Rs24 which was the highest, showing the strength of the bank.

The MCB Bank attracted $150 million by selling GDRs (Global Depository Receipts) in 2006. The GDRs were oversubscribed.

“If the agreement concludes successfully, it will create a new trend as several major banks can also offer shares to earn big money,” said a banker.

Maybank is the leading bank of Malaysia, having a key role in the development of Malaysian economy. Datuk Amirsham A. Aziz, President and Chief Executive Officer, Maybank was recently appointed minister in the Prime Minister’s Department, and also a senator.

“There is also a possibility that the MCB Bank may buy some shares in Maybank in future,” sources said.