Revamp completed, RHB Bank now group holding company

PETALING JAYA: RHB Capital Bhd has completed its internal reorganisation exercise, which entails the transfer by RHB Capital of its entire assets and liabilities to its wholly-owned subsidiary RHB Bank Bhd for about RM3.61 billion.
“With the completion of the proposed internal reorganisation, RHB Bank is effectively the new group holding company which will now spearhead the group’s future growth and is expected to achieve greater synergy and efficiency,” RHB Banking Group managing director Datuk Khairussaleh Ramli said in a filing with the stock exchange.
Following the completion of the internal reorganisation, RHB Capital has also injected an aggregate of about RM2.49 billion into RHB Bank, being the proceeds raised from its rights issue exercise and the proceeds arising from the redemption of its investment in RHB Rupiah Liquid Fund as well as excess cash available to date, in exchange for about 447.84 million new RHB Bank shares which were issued at an issue price of RM5.56 per RHB Bank share.
“The capital injection of RM2.49 billion has strengthened the capital base of the RHB Bank Group for growth and regulatory requirements. With the completion of the internal reorganisation and the capital injection, we will now go into the final phase of the entire corporate exercise, namely the distribution of RHB shares to the RHB Capital shareholders, and the listing of RHB Bank’s shares on Bursa Securities in place of RHB Capital,” added Khairussaleh.
The proforma common equity tier-1 (CET-1) ratio and total capital ratio of RHB Bank Group after the completion of the internal reorganisation and capital injection would improve from 12.0% and 16.5% respectively, as at Dec 31, 2015, to 12.5% and 17.2% respectively.