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New Issue Of Securities (Chapter 6 Of Listing Requirements):Combination Of New Issue Of Securities

BackNov 25, 2013
Type Announcement
Subject NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS)
COMBINATION OF NEW ISSUE OF SECURITIES
Description MALAYSIA BUILDING SOCIETY BERHAD (“MBSB” OR “COMPANY”)

(I) PROPOSED RENOUNCEABLE RIGHTS ISSUE OF NEW ORDINARY SHARES OF RM1.00 EACH IN MBSB (“MBSB SHARES”) TO RAISE GROSS PROCEEDS OF UP TO RM1.47 BILLION; AND

(II) PROPOSED DIVIDEND REINVESTMENT PLAN THAT GIVES SHAREHOLDERS OF MBSB THE OPTION TO ELECT TO REINVEST THEIR CASH DIVIDEND IN NEW MBSB SHARES

(COLLECTIVELY REFERRED TO AS “PROPOSALS”)
Reference is made to the Company’s announcement dated 10 October 2013 in relation to the Proposed Rights Issue (“First Announcement”). Unless otherwise stated, defined terms in this announcement shall carry the same meanings as defined in the First Announcement.
On behalf of the Board of Directors of MBSB, AmInvestment Bank Berhad wishes to inform that the proceeds from the Proposed Rights Issue of RM1,060.5 million which has been proposed to be utilised for the expansion of financing of the of MBSB Group as stated in the First Announcement, are further elaborated and broken down as follows:-


Details of utilisation
Timeframe for utilisation(a)
RM’ million
Expansion of financing
Within 6 months
660.5
Settlement of higher cost of funding(b)
Within 12 months
400.0
Total 1,060.5

Notes:-
(a) From the date of listing of the Rights Shares (b) As at 30 September 2013, the total borrowings of the MBSB Group (including recourse obligation on loans sold to Cagamas Berhad) stood at RM3.06 billion. Assuming the higher cost of funding is settled at the beginning of the financial year 2013, the settlement will result in savings of approximately RM19.6 million per annum assuming cost of funds at 4.9%

Please refer to the circular dated 25 November 2013 for further details.

This announcement is dated 25 November 2013.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name MBSB    
Date Announced 25 Nov 2013  
Category General Announcement
Reference No MB-131125-50970