Malaysia's AmBank to raise around US$196m via private placement

[KUALA LUMPUR] Malaysian bank AMMB Holdings Bhd (AmBank) is looking to raise about RM810 million (S$262.9 million) through a private placement, it said in a bourse filing.

The placement comes after the bank said in February it will pay the Malaysian government RM2.83 billion to settle claims linked to a massive financial scandal at state fund 1MDB, a hefty payment that is expected to have a material impact on the group's earnings.

The bank said late on Thursday it has proposed a placement of 300 million new shares at an illustrative issue price of RM2.70 per placement share.

Of that, RM806 million is intended for working capital purposes including injection of capital into the group's operating subsidiaries over a 12-month period, it said.

The bank also announced in a separate filing that it is assessing a goodwill impairment of RM2.09 billion, that if recognised, will be reflected in the earnings for its fourth quarter ended March 31.

REUTERS

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