Rights option still open for Aabar

12/09/2015 10:15 AST

AABAR Investments PJS, the Abu Dhabi-based investment fund cannot be ruled out from the RM2.5bil rights issue being called by RHB Capital Bhd (RHB Cap).

Although it has not given its commitment for the rights, it can still subscribe to its portion at the entitlement date.

RHB Investment Bank, Affin Hwang Investment Bank, CIMB Investment Bank, Credit Suisse Securities (Malaysia) Sdn Bhd, Maybank Investment Bank and Public Investment Bank have given their commitment to underwrite 250.8 million shares representing approximately 48.45% of the rights Issue.

The remaining 266.9 million rights shares, representing 51.55% of the total rights shares, are the entitlements of the Employees Provident Fund Board and OSK Holdings Bhd, the substantial shareholders of RHB Capital, for which they have provided written undertakings to subscribe in full for their respective entitlements, RHB Cap said.

RHB Cap group managing director Datuk Khairussaleh Ramli when asked on the possibility of Aabar not taking up the rights issues, says the bank will still get all of the RM2.5bil.

"Aabar has not committed to the rights issue. But it has been fully under written and the bank will get the money," he points out.

If Aabar's chooses not to subscribe, this could lead to its interest being diluted to about 17.5% in Malaysia's fourth-largest lender, bankers estimate.

Consequently, bankers say that it would be difficult for Aabar to continue to maintain its stake in the bank which currently stands at 21.09% if it continues to receive cash as opposed to reinvesting its monies under RHB Cap's dividend reinvestment plan.

On Monday, RHB Cap fixed its rights price at RM4.82, representing a discount of about 20.3% to the theoretical ex-rights price of RM6.05.

The exercise, expected to be completed in October, will see some 517.7 million new shares issued, raising gross proceeds of RM2.5bil.

The Star