KUALA LUMPUR: RHB Bank Bhd, Boost Holdings Sdn Bhd and Boost Bhd have entered into a share subscription agreement for RHB Bank and Boost Holdings to subscribe for 100 million new ordinary shares in Boost Bhd for RM100 million.
Boost Holdings is an indirect subsidiary of Axiata Group Bhd
.
RHB Bank and Boost Holdings have jointly incorporated Boost Bhd on March 1, 2023, which is subject to approval from Bank Negara Malaysia, and will be the legal entity to carry out digital banking business.
The share subscription agreement is for Boost Bhd to meet the digital bank minimum capital funds requirement of RM100 million unimpaired by losses, Axiata Group said in a filing with Bursa Malaysia today.
"Boost Holdings and RHB Bank shall hold 60 per cent and 40 per cent respectively of the equity share capital of Boost Bhd.
"Within 30 days from the incorporation of Boost Bhd, Boost Holdings will subscribe for additional 60 million new ordinary shares in Boost Bhd for a cash consideration of RM60 million and RHB Bank will subscribe for additional 40 million new ordinary shares in Boost Bhd for a cash consideration of RM40 million,” Axiata Group said.
The source of funds for RHB Bank’s portion of the proposed subscription amounting to RM40 million is from internally generated funds of RHB Bank.
Upon completion of the proposed subscription, Boost Bhd will seek the approval of BNM to be designated as the legal entity for the proposed digital bank. - Bernama
