Asia Digest: Indonesia’s Bank MNC plans rights issue; Malaysia’s Hubline buys stake in Absolute Privilege

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Indonesia’s Bank MNC International is planning to conduct a rights issue in December 2019 while Malaysia-listed shipowner and charterer Hubline Bhd is acquiring a 75 per cent stake in property investment company Absolute Privilege Sdn Bhd for 16.37 million Ringgit.

Bank MNC International plans $14.6m rights issue

Indonesia’s Bank MNC International is planning to conduct a rights issue in December 2019, according to a report by Kontan. The company will issue around 4.13 billion new shares at a nominal price of 50 rupiah.

Bank MNC is still preparing the rights issue plan and has not appointed any standby buyer yet to absorb the shares that may not be acquired by existing shareholders. The proceeds will be used to strengthen the company’s capital structures, said Bank MNC CEO Mahdan.

In June 2019, Bank MNC clocked 15.7% capital adequacy ratio (CAR), while its core capital stands at 1.1 trillion rupiah. Bank MNC is owned by local MNC Kapital Indonesia wherein it holds 46.47%. Remaining shareholders include Marco Prince Corp, WInfly and the founder of MNC Group Harry Tanoesoedibjo, besides the general public.

Hubline acquires 75% in Absolute Privilege for $3.9m

Malaysian listed shipowner and charterer Hubline Bhd is acquiring a 75% stake in property investment company Absolute Privilege Sdn Bhd for 16.37 million ringgit ($3.9 million), according to a report by The Edge.

The acquisition has been made to secure the tenancy of Hubline’s dry bulk operations. Absolute Privilege’s warehouse and approximately 30% of the properties’ office spaces are occupied (on rent) by its subsidiaries for business operations in dry bulk shipping.

Absolute Privilege’s principal assets comprise two pieces of land in Miri, Sarawak state. The land covers 8.218.2 square meters worth 21.6 million Ringgit and 6.074 square meters worth 16.4 million Ringgit.