KUALA LUMPUR: AMMB HOLDINGS BHD [] is buying the 100% stake in AmIslamic Bank Bhd for RM1.337 billion from AmBank (M) Bhd under an internal reorganisation exercise.
AMMB said it had entered into a sale and purchase agreement with its unit AmBank to acquire the stake comprising of 403.038 million RM1 shares at a cash purchase consideration of RM1.337 billion.
The purchase consideration is based on the audited net tangible asset of AmIslamic Bank as at March 31, 2010.
'The purchase consideration of RM1.337 billion will be funded by AMMB through internally generated funds (proceeds receivable from AmBank in respect of the redemption of the RM575 million exchangeable bonds at par and dividends),' it said.
AMMB explained the proposed acquisition was part of the group's ongoing capital management strategy.
This would enable the group to address the impact from the planned introduction of new capital regulation under Basel 3, which would place greater emphasis on core capital ratio; and streamline group shareholding structure to achieve a more efficient deployment of capital funds within the group.
'As an internal reorganisation, the proposed acquisition does not have any effect on the share capital and, consequently, shareholdings of the substantial shareholders of AMMB,' it said.
AMMB said it had entered into a sale and purchase agreement with its unit AmBank to acquire the stake comprising of 403.038 million RM1 shares at a cash purchase consideration of RM1.337 billion.
The purchase consideration is based on the audited net tangible asset of AmIslamic Bank as at March 31, 2010.
'The purchase consideration of RM1.337 billion will be funded by AMMB through internally generated funds (proceeds receivable from AmBank in respect of the redemption of the RM575 million exchangeable bonds at par and dividends),' it said.
AMMB explained the proposed acquisition was part of the group's ongoing capital management strategy.
This would enable the group to address the impact from the planned introduction of new capital regulation under Basel 3, which would place greater emphasis on core capital ratio; and streamline group shareholding structure to achieve a more efficient deployment of capital funds within the group.
'As an internal reorganisation, the proposed acquisition does not have any effect on the share capital and, consequently, shareholdings of the substantial shareholders of AMMB,' it said.
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