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Multiple Proposals

BackFeb 25, 2011
Date Announced : 25/02/2011  



Type : Announcement
Subject :
MULTIPLE PROPOSALS

Description :
MALAYSIA BUILDING SOCIETY BERHAD (“MBSB” OR “COMPANY”)

(A) PROPOSED RENOUNCEABLE RIGHTS ISSUE OF UP TO 507,087,462 NEW ORDINARY SHARES OF RM1.00 EACH IN MBSB (“MBSB SHARES”) (“RIGHTS SHARES”) AT AN ISSUE PRICE OF RM1.00 FOR EACH RIGHTS SHARE ON THE BASIS OF 5 RIGHTS SHARES FOR EVERY 7 EXISTING MBSB SHARES HELD AS AT AN ENTITLEMENT DATE TO BE DETERMINED LATER TOGETHER WITH UP TO 507,087,462 NEW FREE DETACHABLE WARRANTS (“WARRANTS”) ON THE BASIS OF 1 WARRANT FOR EVERY 1 RIGHTS SHARE SUBSCRIBED (“PROPOSED RIGHTS ISSUE WITH WARRANTS”) ;

(B) PROPOSED CHANGE IN THE COMPOSITION AND INCREASE IN THE AUTHORISED SHARE CAPITAL OF THE COMPANY; AND

(C) PROPOSED AMENDMENTS TO THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE COMPANY

Announcement Details/Table Section :

 

Further to the Company’s announcements dated 14 February 2011 and 22 February 2011 respectively, on behalf of the Board of Directors of MBSB (“Board”), RHB Investment Bank Berhad is pleased to announce the following:-

  1. the entitlement basis for the Proposed Rights Issue with Warrants has been fixed at 5 Rights Shares for every 7 existing MBSB Shares held as at an entitlement date to be determined later together with new Warrants on the basis of 1 Warrant for every 1 Rights Share subscribed;
  2. the issue price for the Rights Shares has been fixed at RM1.00 per Rights Share; and
  3. the exercise price for the Warrants has been fixed at RM1.00 for every 1 new MBSB Share.

The issue price for the Rights Shares has been fixed at RM1.00 which represents a discount of approximately 23.1% to the theoretical ex-rights price (“TERP”) of MBSB Shares of RM1.30 based on the 5-day volume weighted average market price (“VWAP”) of MBSB Shares up to and including 24 February 2011, being the market day immediately preceding the price-fixing date on 25 February 2011, of approximately RM1.52.

The exercise price for the Warrants of RM1.00 was determined by the Board after taking into consideration, inter-alia, the market demand for MBSB Shares, the prevailing market conditions and market price of MBSB Shares. The exercise price of RM1.00 represents a discount of approximately 23.1% to the TERP of MBSB Shares of RM1.30 based on the 5-day VWAP of MBSB Shares up to and including 24 February 2011, being the market day immediately preceding the price-fixing date on 25 February 2011, of approximately RM1.52.

This announcement is dated 25 February 2011.