KUALA LUMPUR: RHB Bank Bhd has subscribed for an additional 3.8 million new Boost Bank Bhd shares for RM3.8mil cash to maintain its 40% equity interest in the latter.
The source of funds for the additional shares subscription is derived from internally generated funds of RHB Bank.
To recap, Boost Bhd, RHB Bank, and Boost Holdings (an indirect subsidiary of Axiata Group Bhd
) signed a share subscription agreement and shareholders' agreement, with RHB Bank and Boost Holdings holding 40% and 60% equity interest in Boost Bank, respectively.
Therefore, Boost Holdings had on April 15 also subscribed for an additional 5.7 million new Boost Bank shares for a cash consideration of RM5.7mil to maintain its 60% equity interest in Boost Bank.
RHB Bank said the purpose of the additional share subscription is for Boost Bank to fund its operating and capital expenditure for the first half of 2024 and to continue meeting the minimum capital funds as required by Bank Negara.
“Upon completion of the additional April subscription, the paid-up capital of Boost Bank shall be approximately RM224.5mil comprising approximately 224.5 million Boost Bank shares,” it said.
