RHB Bank boosts stake in Boost Bank with RM3.8m additional share subscription

RHB Bank Bhd has confirmed its subscription for an additional 3.8 million new Boost Bank shares, valued at RM3.8 million, to maintain its 40% equity interest in the latter.

The move comes in line with the bank’s commitment to bolstering its digital banking arm, it told the bourse today. 

Additionally, Boost Holdings, an indirect subsidiary of Axiata Group Bhd, has subscribed for an additional 5.7 million Boost Bank shares, amounting to RM5.7 million, to retain its 60% equity interest in Boost Bank. 

Collectively known as the “additional April subscription,” these shares will help Boost Bank finance its operational and capital expenditures for the first half of 2024 while meeting the minimum capital requirements set by Bank Negara Malaysia.

The subscription, not subject to shareholder approval, is financed using internally generated funds. –TMR