RHB Bank had subscribed for an additional 3.8 million new Boost Bank Shares for a cash consideration of RM3.8 million to maintain its 40% equity interest in Boost Bank.
The banking group said the source of funds for the additional RHB April Subscription is derived from internally generated funds of RHB Bank.
RHB Bank and Boost Holdings (an indirect subsidiary of Axiata Group Berhad) are to hold 40% and 60% respectively of the equity share capital of Boost Bank. Boost Holdings had also subscribed for an additional 5.7 million new Boost Bank Shares for a cash consideration of RM5.7 million to maintain its 60% equity interest in Boost Bank.
The parties said purpose of the additional April 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 Malaysia.
Upon completion, the paid-up capital of Boost Bank shall be approximately RM224.5 million comprising approximately 224.5 million Boost Bank Shares.
As at 5 April 2024, the EPF, a major shareholder of RHB Bank with a 40.13% equity interest also holds an equity interest of 17.97% in Axiata Group Berhad.
