Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily on September 13, 2018

KUALA LUMPUR: MNRB Holdings Bhd’s largest shareholder AmanahRaya Trustees Bhd has given its undertaking in writing to subscribe in full for its entitlement and also subscribe for undersubscribed excess rights shares under MNRB’s proposed rights issue to raise about RM400 million.

This is subject to AmanahRaya’s resultant shareholdings in MNRB not exceeding 44.3%.

As at Aug 29, 2018, AmanahRaya and Permodalan Nasional Bhd (PNB) held 42.4% and 12.74% of MNRB respectively.

In a filing with Bursa Malaysia yesterday, MNRB said it procured an irrevocable written undertaking last Friday from AmanahRaya on the subscription commitment.

As a result of the undertaking, the group’s net assets per share and gearing are expected to fall from RM4.81 to RM3.37 and from 0.21 times to 0.17 times respectively.

“The AmanahRaya undertaking will result in a lower number of rights shares required to be underwritten. Accordingly, the estimated expenses will reduce from RM3.2 million to RM1.5 million,” MNRB said.

Percentage shares of the group’s substantial shareholders will remain the same in the event that they subscribe in full for their entitlement under the proposed rights issue, it added.

MNRB on July 18 proposed to raise RM400 million via a rights issue, which was subsequently supported by its second-largest shareholder, PNB, via an irrevocable written conditional undertaking on July 27.

For illustration purposes, the group had assumed an issue price of RM1.57 per rights share, and an entitlement basis of four rights shares for every five shares held.

The proceeds of the rights issue will be injected into its takaful subsidiaries — Takaful Ikhlas Bhd and Malaysian Reinsurance Bhd, at RM300 million and RM100 million respectively — to enhance the capital position for both companies and grow its takaful and reinsurance business, MNRB had said.

MNRB shares closed unchanged at RM1.55 yesterday, bringing a market capitalisation of RM495.4 million.

      Print
      Text Size
      Share