Asia File puts RM10m more in Maybank’s structured investment product

PETALING JAYA: Asia File Corp Bhd (AFC) has further invested RM10 million in a structured investment product issued by Maybank Investment Bank Bhd, aggregating up to RM35 million to date.
The Auto-callable Equity-linked Investment pays a regular coupon and can potentially be early redeemed or redeemed in shares rather than cash at maturity depending on the performance of the underlying shares.
“The investment is part of Asia File’s core strategy to maximise return on assets held by the group taking into consideration the potential return and level of risk associated with the investment,” Asia File said in a filing with the stock exchange.
The purchase consideration was satisfied in cash. The investment was funded from internally generated funds and is not expected to materially affect the group’s earnings, net tangible assets and gearing for the financial year ending March 31, 2017.
“As the investment is entered into with a licensed investment bank and the underlying shares are in relation to reputable international companies with proven track record, the board of the directors is of the view that the investment risk is minimal.”
The highest percentage ratio applicable to the investment is 6.71%. The investment is not subject to the approval of Asia File’s shareholders.
“After taking into consideration the pertinent facts and level of risk associated with the investment, the board of directors of AFC is of the opinion that the investment is in the best interest of the AFC,” the company said.