AMMB Holdings Bhd has taken another step towards acquiring Menara AmBank by submitting an application to the Ministry of Education (MOE), marking progress in the RM331 million property acquisition announced earlier this year.

The application was submitted by its wholly owned subsidiary, AmBank (M) Bhd, on July 2 in accordance with Clause 3.1.2 of the sale and purchase agreement (SPA). The submission forms part of the regulatory process required before the transaction can be completed.

The proposed acquisition, first announced on June 8, involves the purchase of Menara AmBank and related assets from Maybank Trustees Bhd, acting as trustee for AmFIRST Real Estate Investment Trust (AmFIRST REIT). As the transaction involves related parties, it falls under Chapter 10 of Bursa Malaysia's Main Market Listing Requirements and is subject to the relevant governance and disclosure requirements.

AMMB noted that the latest submission is part of the ongoing execution process. The acquisition remains conditional upon obtaining the necessary regulatory approvals and satisfying all conditions precedent outlined in the SPA before completion can take place.

Once completed, the acquisition is expected to enable AMMB to own its headquarters building, providing greater long-term control over a key operational asset.

Key Takeaways

• AMMB has submitted an application to the Ministry of Education as part of the approval process for its proposed RM331 million acquisition of Menara AmBank.
• The application was made pursuant to the terms of the sale and purchase agreement signed for the transaction.
• The property is being acquired from AmFIRST REIT, represented by Maybank Trustees Bhd as trustee.
• The transaction is classified as a related party transaction and is subject to Bursa Malaysia's Main Market Listing Requirements.
• Completion of the acquisition remains subject to regulatory approvals and the fulfilment of all conditions precedent.
• Owning Menara AmBank would provide the banking group with greater long-term ownership and control of its headquarters property.