KUALA LUMPUR: BIMB Holding's Bhd's 51%-owned Bank Islam Malaysia Bhd has entered into a share subscription and shareholders' agreement (SSA) with Farihan Corporation Sdn Bhd and Rakit Induk Sdn Bhd to venture into the Islamic pawn-broking business.
Under the agreement signed on Friday, July 2, Bank islam will subscribe for two million new ordinary shares of RM1 each in Farihan at an issue price of RM1. Upon completion of the proposed subscription, it will hold 80% stake in Farihan.
BIMB said under the SSA, Rakit Induk would work with Bank Islam to develop the Islamic pawn-broking business in Malaysia.
For the duration of the agreement and for five years after completion of the allotment and issue of the two million shares to Bank Islam, Rakit Induk and its related corporations (other than Farihan) and employees must not engage in any Islamic pawn-broking or any other business undertaken by Farihan.
Bank Islam was also granted a call option whereby it may at any time from Jan 1, 2012 to Dec 31, 2012 give written notice to Rakit Induk requiring the latter to sell all shares held by Rakit Induk to Bank Islam at a price equivalent to the net tangible asset per share together with a premium of 20% or RM1, whichever is higher.
Under the agreement signed on Friday, July 2, Bank islam will subscribe for two million new ordinary shares of RM1 each in Farihan at an issue price of RM1. Upon completion of the proposed subscription, it will hold 80% stake in Farihan.
BIMB said under the SSA, Rakit Induk would work with Bank Islam to develop the Islamic pawn-broking business in Malaysia.
For the duration of the agreement and for five years after completion of the allotment and issue of the two million shares to Bank Islam, Rakit Induk and its related corporations (other than Farihan) and employees must not engage in any Islamic pawn-broking or any other business undertaken by Farihan.
Bank Islam was also granted a call option whereby it may at any time from Jan 1, 2012 to Dec 31, 2012 give written notice to Rakit Induk requiring the latter to sell all shares held by Rakit Induk to Bank Islam at a price equivalent to the net tangible asset per share together with a premium of 20% or RM1, whichever is higher.
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