KUALA LUMPUR (July 23): MBSB Bhd (KL:MBSB) has divested its asset management arm, MIDF Amanah Asset Management Bhd (MAAM), to Tortoise Works Sdn Bhd — an entity led by MAAM chief executive officer Shan Kamahl Mohammad — saying it is part of a strategy to sharpen focus on its core banking business.
This confirms an earlier report by The Edge Malaysia in May that Shan Kamahl was leading a management buyout of MAAM.
Tortoise Works is a Kuala Lumpur-based business management consultancy firm incorporated in 2018, in which Shan Kamahl holds a direct 45% stake, according to Companies Commission of Malaysia (SSM) records. The remaining 55% is held by Atticus Capital Managers Sdn Bhd — a company controlled by Shan (56%) and Jeyabalan SK Parasingam (44%), who is also an independent non-executive director at Cahya Mata Sarawak Bhd (KL:CMSB). This means Shan Kamahl has an effective 75.8% stake in Tortoise Works.
Shan Kamahl has helmed MAAM since October 2022, after joining the firm in 2021 as its head of equity. He has over two decades of experience in fund management, having previously held senior roles at the ValueCAP group, Fortress Capital Asset Management, and advisory roles at Urusharta Jamaah Sdn Bhd and Tenggara Capital Seed 1 LP. He also established fund management firm VCAP Asset Managers Sdn Bhd.
MBSB — Malaysia's second-largest stand-alone Islamic bank after Bank Islam Malaysia Bhd (KL:BIMB) — acquired MAAM in October 2023 as part of its RM1.01 billion takeover of MIDF from Permodalan Nasional Bhd (PNB).
In a statement, MBSB said the Securities Commission Malaysia approved the divestment on July 9, and that the transaction was completed on Thursday. The transaction value was not disclosed, and the disposal is not expected to have any material financial impact on the group.
MBSB group CEO Rafe Haneef said the divestment reflects the group's ongoing transformation strategy to concentrate on its core banking operations. "Sharpening our focus on core banking means being deliberate about what sits outside it. MAAM has built a respected name over 34 years, and as it embarks on its next chapter of growth, we wish the team every success," Rafe added.
Meanwhile, Shan Kamahl said Tortoise Works is committed to preserving MAAM's heritage while pursuing sustainable growth, disciplined governance and strong investment outcomes.
MBSB had been trying to sell MAAM for some time. The Edge reported in July last year that MBSB had been in talks to sell the unit to Salaam Group, Australia’s largest shariah-compliant wealth-services provider, but discussions reportedly collapsed because of regulatory hurdles in Australia. MBSB’s asking price had also deterred some prospective buyers, the weekly noted.
According to filings with SSM, MAAM has largely been loss making in the last few years.
After two loss-making years in the financial year ended Dec 31, 2021 (FY2021) and FY2022, the company returned to the black in FY2023 with a net profit of RM1.12 million on revenue of RM10.34 million, but slipped back into the red in FY2024 with a net loss of RM9.32 million as revenue shrank to RM1.78 million.
As at end-2024, MAAM had total assets of RM14.71 million and liabilities of RM2.55 million. Accumulated losses stood at RM24.83 million.
MBSB shares closed down half a sen or 0.78% at 63.5 sen on Thursday, valuing the lender at about RM5.22 billion. The stock is down nearly 10% so far this year.