Thursday 28 Mar 2024
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KUALA LUMPUR (April 14): RHB Capital Bhd (RHBCap), the country's fourth largest lender by assets, has completed the transfer of its entire stake in its subsidiaries to RHB Bank Bhd for RM3.61 billion cash.

"With the completion of the internal reorganisation, RHB Bank is effectively the new group holding company which will now spearhead the group's future growth and is expected to achieve greater synergy and efficiency," said its group managing director Datuk Khairussaleh Ramli in a statement today.

In order to proceed with the completion of the exercise, RHBCap and RHB Bank have mutually agreed to waive the condition precedent relating to the tax recoverable as set out in the share sale agreement (SSA).

"As such, the tax recoverable will not be transferred to RHB Bank under the SSA and will be dealt with by the board or the proposed liquidator accordingly," said RHBCap.

Following this, RHBCap has injected an aggregate of RM2.49 billion into RHB Bank, being the proceeds raised from its rights issue exercise and the proceeds arising from the redemption of its investment in RHB Rupiah Liquid Fund as well as excess cash available to date. This is in exchange for 447.84 million new RHB Bank shares which were issued at an issue price of RM5.56 per RHB Bank share.

"The capital injection of RM2.49 billion has strengthened the capital base of the RHB Bank Group for growth and regulatory requirements.

"We will now go into the final phase of the entire corporate exercise, namely the distribution of RHB shares to RHBCap shareholders, and the listing of RHB Bank's shares on Bursa Securities in place of RHBCap," said Khairussaleh.

Based on the audited consolidated balance sheet of RHB Bank as at Dec 31, 2015, the pro forma CET-1 ratio and total capital ratio of RHB Bank would improve from 12% and 16.5% to 12.5% and 17.2% respectively after the completion of the internal reorganisation and capital injection.

RHBCap shares closed five sen or 0.83% higher at RM6.10 today, with 1.03 million shares traded, for a market capitalisation of RM18.76 billion.

 

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