This article first appeared in The Edge Financial Daily, on April 7, 2016.

KUALA LUMPUR: RHB Capital Bhd (RHBCap) has started its internal reorganisation with four payment-by-cash agreements with RHB Bank, with the first being a share sale agreement to transfer its entire equity interest and its units to the latter for approximately RM3.41 billion.

In a bourse filing yesterday, RHBCap said for the second agreement, its wholly-owned unit RHB Hartanah Sdn Bhd and RHB Bank had signed an asset purchase agreement for RHB Bank to acquire certain RHB Hartanah’s assets and liabilities, including its subsidiary RHB Property Management Sdn Bhd, for approximately RM298.37 million.

It said the third agreement involves a sale and purchase agreement between RHB Hartanah and RHB Bank for the acquisition by RHB Bank of a piece of land measuring 1.027ha under Geran 71681, Lot 512 in Kuala Lumpur, and RHB Centre for a total consideration of RM225.46 million.

The fourth agreement features a sale and purchase agreement between RHB Hartanah and RHB Bank for the acquisition by RHB Bank of 0.5ha of land under Geran 31538, Lot 29 in Kuala Lumpur for RM67.69 million. The purchase consideration for both lands forms part of the consideration for the purchase of the assets payable under the asset purchase agreement, RHB Cap said.

Barring unforeseen circumstances, the proposed internal reorganisation is expected to be completed by the second quarter of 2016, it added. 

The agreements come almost a year after RHBCap announced its proposal to conduct an internal reorganisation that would see it assuming its parent’s listing status. During the announcement on April 13, RHB Banking Group managing director Kellee Kam reportedly said the restructuring would give better capital and tax efficiency for profit growth.