Boost Holdings, RHB Bank subscribe additional shares in boost forRM85mil

KUALA LUMPUR: Axiata Group Bhd’s 75.43 per cent-owned subsidiary, Boost Holdings Sdn Bhd, and RHB Bank Bhd had subscribed 85 million new shares in Boost Bhd for RM85 million cash on Nov 3, 2023.

In a filing with Bursa Malaysia, the telecommunication group said Boost Holdings has subscribed 51 million new shares in Boost for RM51 million, which would be funded from internally generated funds.

“The purpose of the additional subscription is for Boost to continue meeting the minimum capital funds requirements for a digital bank of RM100 million unimpaired by losses.

“Upon completion of the additional subscription, the paid-up capital of Boost is RM185 million, comprising 185 million Boost shares,” Axiata said.

It said the additional Boost Holdings subscription would not have any effect on Axiata’s issued share capital and shareholdings of the substantial shareholders.

The exercise is also not expected to have any material effect on the group’s net asset, gearing and earnings for the financial year ending Dec 31, 2023.

In a separate filing, and RHB Bank Bhd said it has also subscribed 34 million new shares in Boost for RM34 million, which would be funded via internally generated funds.

“The additional RHB subscription will not have any effect on the issued share capital and shareholdings of the substantial shareholders of RHB Bank,” it said.

The bank said the exercise is also not expected to have any material effect on RHB Banking Group’s net asset, gearing and earnings for the financial year ending Dec 31, 2023.

To recap, Boost Holdings, RHB Bank Bhd (RHB Bank) and Boost Bhd had inked a share subscription agreement and shareholders agreement (SHA) to form a digital bank consortium on March 31, 2023.

Pursuant to the SHA, Boost Holdings and RHB Bank shall hold 60 per cent and 40 per cent of Boost’s equity share capital, respectively. – BK