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Thursday, November 19, 2015

OSK stake in RHB Cap may exceed 10%

KUALA LUMPUR: OSK Holdings Bhd’s (OSKH) shareholding in RHB Capital Bhd (RHB Cap) may exceed the 10% threshold legally allowed as a result of Bank Negara’s restriction on another major shareholder, Aabar Investments PJS, from increasing its stake beyond 15% under RHB Cap’s rights issue exercise.
In a filing with Bursa Malaysia yesterday, the financial services group said OSKH, which currently owns 9.97% in RHB Cap, had informed of its intention to subscribe in full for its entitlement under the rights issue announced in April.
With Aabar maintaining its current shareholding, that will result in OSKH’s stake rising to 10.07% and exceeding a multiple of 5%, which requires Bank Negara’s prior approval.
In its statement, RHB Cap also revealed that OSKH had on Oct 21 submitted an application to seek the central bank’s approval and the regulator’s decision was still pending.
In order to ensure that its rights issue is implemented in full, RHB Cap on Tuesday entered into a supplemental agreement to the management and underwriting agreement dated Sept 9 to have 2.3 million rights shares underwritten at the same underwriting fee as those rights shares already underwritten.
The agreement was signed with RHB Investment Bank, Affin Hwang Investment Bank Bhd, CIMB Investment Bank Bhd, Credit Suisse Securities (M) Sdn Bhd, Maybank Investment Bank Bhd and Public Investment Bank Bhd.
RHB Cap said the arrangement was required to cater for the instance where Bank Negara’s greenlight for OSKH to increase in shareholding above 10% was not received by Dec 8, the last date for acceptance of and payment for the rights shares.
The total number of rights shares underwritten now stands at 253.141 million rights shares, representing about 48.89% of the rights issue.
To recap, in April RHB Cap announced a proposed group restructuring that would result in its listing status on Bursa Malaysia being transferred to RHB Bank.
As part of the corporate restructuring, it proposed a renounceable rights issue to raise gross proceeds of up to RM2.5bil to further capitalise RHB Bank and to finance the working capital requirements of the RHB Bank group.

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