Apparently over the years MNRB has incorporated Takaful insurance subsidiary to undertake Islamic insurance as well. So it would make it a competitor to Syarikat Takaful Berhad. The proposed rights issue is to partly to expand the business of its smallish Takaful insurance subsidiary.
Sorry people do buy islamic insurance from takaful ikhlas, back in 2013 it was reported that "The company is currently ranked third among takaful companies behind Etiqa Takaful Bhd and Syarikat Takaful Malaysia Bhd in terms of total gross contribution."
I am hoping that the coming QR will be good and maybe there will be a surprise dividend. Anyway this is a government linked company under PNB which is now headed by former BNM governor Zeti and is currently selling at deep discount to NTA and extremely low P/E. The government can also take it private.
If RM400 mil was the quantum to be raised , then based on 320mil shares the shareholders need to fork out RM1.25 for each share hold thr RI. The last time the Co. rewarded the shareholders were dividend paid was in 2014 and BI 1:2 in 2016. Since then the minority shareholders were left in the cold. If the company needs to enlarge the Share Capital , why not issue Bonus shares. Just my thought - why put money there.
the main issue here, what is the purpose for raising such a big amount $400 mil?..if to buy something beneficial to the company, than it would be greatly appreciated. 400 million huge amount ler... anybody got any idea?
I think there's currently borrowings of RM320 million. The Company has grown too large when it diversified from solely re-insurance into takaful, so it needs larger capital basein order to take in more business. General takaful and family takaful is now required to be split into two separate subsidiaries and requires additional RM100 million to form the second subsidiary per directive from BNM.
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TheContrarian
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Posted by TheContrarian > 2018-07-26 00:10 | Report Abuse
Apparently over the years MNRB has incorporated Takaful insurance subsidiary to undertake Islamic insurance as well. So it would make it a competitor to Syarikat Takaful Berhad. The proposed rights issue is to partly to expand the business of its smallish Takaful insurance subsidiary.