RHB Bank has informed that it subscribed for additional 8.6 million ordinary shares in Boost Bank for a cash consideration of RM8.6 million to maintain its 40% equity interest in Boost Bank.
The bank said the source of funds for the additional subscription was derived from internally generated funds of RHB Bank.
As per the agreement, RHB Bank and Boost Holdings Sdn Bhd are to hold 40% and 60% share of the equity share capital of Boost Bank. As such, Boost Holdings had on 16 February 2024 also subscribed for additional 12.9 million new Boost Bank shares for a cash consideration of RM12.9 million to maintain its 60% equity interest in Boost Bank.
The parties subscribed to the additional subscription 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 Malaysia.
Upon completion of the Additional February Subscription, the paid-up capital of Boost Bank is approximately RM206.5 million comprising approximately 206.5 million Boost Bank Shares.
RHB said the additional share subscription will not have any effect on the issued share capital and shareholdings of the substantial shareholders. .
