Malaysia Building Society Berhad (KLSE:MBSB) are reportedly in merger talks with Asian Finance Bank Berhad. “The merger of Malaysia Building Society Bhd (MBSB) and Asian Finance Bank Bhd (AFB) is likely to be a deal that involves both cash and shares. This is because only two of AFB's four Middle Eastern shareholders are looking to sell off their stakes while the other two are understood to want to stay and have a share in the enlarged entity,” sources said.

It is still early days as MBSB and AFB are only at the due diligence stage now, sources familiar with the matter tell The Edge. The process started in early February, 2017. There has been no discussion about valuation yet but the parties are understood to be aiming to come up with a deal in May, 2017.

"Just two parties Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) and Global MENA Financial Assets Limited want to exit AFB. That's what they're putting on the table. The other two are understood to want to stay, maybe they'll exit later, post-merger," says a source.

Source said, “There is nothing in writing yet about which shareholder wants to exit or stay. But yes, at this stage, it looks like the deal could end up being a combination of cash and/or shares.”