|Corporate exercise since listing on KLSE in 1994|
|1995||Issued RM200 mil Sub Bonds with 70.5 mil Warrants.|
|1997||Raised RM385 mil via 1-for 8 Rights Issue.||2000||Completed 1-for-1 Bonus Issue of 577.6 mil shares via capitalisation of reserves. Completed acquisition of Credit Corporation (Malaysia) Bhd and Wah Tat Bank Bhd. 223.3 mil new shares were issued. Redeemed Sub Bonds upon its maturity on 20 Dec. Expiry of Warrants on same date.|
Hong Leong Bank Berhad (HLB or Bank) was incorporated in Malaysia on 26 October 1934 as a private limited company pursuant to the Companies Ordinance (Order C-2, 1927) of Sarawak, under the name of Kwong Lee Bank Limited which was later changed to Kwong Lee Bank Berhad on 15 April 1966. On 2 February 1983, the Bank changed its name to Malayan United Bank Berhad and later on 26 June 1989, it changed its name to MUI Bank Berhad.
HLB assumed its present name on 10 January 1994 after it was acquired by Hong Leong Credit Berhad (HLC) on 3 January 1994. Subsequent to the change in ownership, HLB underwent a restructuring scheme. The Bank called for a rights issue of 158 million new HLB shares at par on the basis of 7.9 new Shares for every six (6) existing Shares held to raise a total of RM158 million in gross proceeds. HLB also acquired from its holding company, HLC, the entire issued and paid-up share capital of Hong Leong Finance Berhad (HLF) comprising 120 million ordinary shares of RM1.00 each for a total purchase consideration of RM576 million. The said purchase consideration was satisfied by the issuance of 192 million new HLB shares at an issue price of RM3.00 per share of which rights to allotment of 188.06 million new HLB shares were offered to the public. The restructuring scheme was completed on 19 August 1994.
On 17 October 1994, HLB was listed on the Main Board of the Kuala Lumpur Stock Exchange (KLSE) with a paid-up capital of RM470 million.
In 1995, HLB undertook a fund raising exercise with the issue of RM200 million nominal amount of 3.0% Subordinated Bonds 1995/2000 with 70.5 million detachable warrants at 100% of the nominal amount of the Bonds to the Primary Subscribers on a bought deal basis. The warrants were listed on the KLSE in March 1996.
The warrants were constituted by a Deed Poll executed by the Bank on 19 December 1995 for the warrant holders. Each warrant gives the registered holder the right at any time during the exercise period from 29 February 1996 to 28 February 1999 to subscribe in cash for one new ordinary share of RM1.00 of the Bank at an exercise price of RM5.85 per new ordinary share. The exercise price may be adjusted in accordance with the provisions contained in the said Deed Poll.
Arising from the Rights Issue as described below, the following adjustments were made to the warrants:
The subscription period of outstanding warrants was subsequently extended by approximately 21 months from 28 February 1999 to 20 December 2000.
Further adjustments were made to the Warrants pursuant to HLB's Bonus Issue Exercise in Year 2000:
1-for-8 Rights Issue
In 1997, HLB completed a 1-for-8 Rights Issue of 64,129,877 new shares at an issue price of RM6.00 per share. Adjustments to the outstanding warrants as described above were made.
1-for-1 Bonus Issue
In 2000, HLB completed a 1-for-1 Bonus Issue on 6 November 2000 with the listing of a total of 577,582,885 new HLB shares. Adjustments as described above were also made to the outstanding warrants.
Acquisition of Wah Tat Bank and Credit Corporation (Malaysia)
The acquisition of 100% equity in Wah Tat Bank Berhad (WTB) and Credit Corporation (Malaysia) Berhad (CCM) was completed on 26 December 2000 and 29 December 2000 respectively. The High Court of Malaya, had on 29 December 2000, granted Vesting Orders to effect the transfer of the banking business of WTB to the Bank and the transfer of the finance company business of CCM to HLF, a wholly-owned subsidiary of the Bank. The Vesting Orders had taken effect on 1 January 2001.