Date : 15 January 2001

ARTICLE ENTITLED : "MBf Fin may lose card business"


TypeReply to query
Reply to Query Letter by KLSE reference IDPL-010112-40942
"MBf Fin may lose card business"

Contents :

              Reference is made to the article entitled "MBf Fin may lose card business" which appeared in the Business Times (on pages 1 & 17) on 12 January 2001.

              MBf Holdings Berhad wishes to inform that on 9 January 2001, MBF Cards (M'sia) Sdn Bhd (formerly known as MBf Card Services Sdn Bhd) ["MBF Cards"] sent a letter to MBf Finance Berhad ["MBf Finance"] giving six (6) months notice to terminate the MBf MasterCard Affiliate Agreement dated 5 February 1988 and Supplementary Affiliate Agreement dated 1 January 1998 ["the Agreements"] entered into between MBf Finance and MBF Cards in accordance with the provisions of the Agreements.

              Meanwhile, MBF Cards has entered into an agreement with Arab-Malaysian Bank Berhad and Arab-Malaysian Finance Berhad [collectively "AMBG"] with regard to AMBG providing new lines of credit for MBF Cards' MasterCard credit cards. In this respect, MBF Cards and AMBG had, jointly sent a letter to MBF Cards' MasterCard members inviting them to take up new cards to be issued by MBF Cards and to be financed by AMBG.

              We hope the above clarifies our current position.

              Yours faithfully,
              For and on behalf of
              MBf Holdings Berhad

              Yap Boon Teck
              Company Secretary

              Dated 15 January 2001

Query Letter Contents :

We refer to the above news article appearing in Business Times, pages 1 & 17,
on 12 January 2001, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
"MBf Finance Bhd appears to have all but lost its lucrative credit card
business following the decision by the MasterCard rights-holder in Malaysia to
terminate its agreement with the finance company."
"... MBf Cards is now in partnership with the Arab-Malaysian Banking Group and
a new line of credit will be provided by Arab-Malaysian Finance."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.

Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully

Manager, Listing Operations
c.c. Securities Commission (via fax)

Announcement Info

Stock Name MBFHLDG    
Date Announced15 Jan 2001  
CategoryGeneral Announcement
Reference NoMH-010115-34604