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Thursday, July 19, 2018

MNRB plans to raise RM400mil by selling new shares

CORPORATE NEWS
Thursday, 19 Jul 2018

In a filing with Bursa Malaysia yesterday, the Malaysia’s only national reinsurer company said it has proposed a rights issue of four new rights shares for every five shares held.

PETALING JAYA: MNRB Holding Bhd is planning a fund-raising exercise of about RM400mil by selling new shares to its shareholders.

In a filing with Bursa Malaysia yesterday, the Malaysia’s only national reinsurer company said it has proposed a rights issue of four new rights shares for every five shares held.

Shares of MNRB closed at RM2.34 yesterday, giving it a market capitalisation of RM747.98mil.

MRB said it plasns to utilise the proceeds from the proposed rights issue to enhance the capital position for its subsidiaries, namely, Takaful Ikhlas Bhd and Malaysian Reinsurance Bhd, and grow their businesses.

For illustration purposes, the group assumed the issue price at RM1.57 per rights share. MNRB said the issue price represents a discount of 20.3% to the theoretical ex-rights price of RM1.97, based on the five-day volume weighted average market price of RM2.29 as at June 22.

“Barring any unforeseen circumstances, the proposed rights issue is expected to be completed in the fourth quarter of 2018,” it said.

MNRB also said it intends to procure an irrevocable written undertaking from Permodalan Nasional Bhd (PNB) to subscribe in full for its entitlement.

PNB and the unit trust fund managed by PNB (namely AmanahRaya Trustees Bhd – Amanah Saham Bumiputera) hold about 12.7% and 42.4% respectively in MNRB.

MNRB is trading at far below its book value and its business is not growing as expected. The share price is hovering at RM2.50, while the book value is stated at RM4.44 per share.


Read more at https://www.thestar.com.my/business/business-news/2018/07/19/mnrb-plans-to-raise-rm400mil-by-selling-new-shares/#sk4MHX2ujIEBQHEH.99

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