KUALA LUMPUR, Nov 3 (Reuters) – U.S. private equity firm Texas Pacific Group Capital [TPG.UL] will invest up to $150 million in Malaysia’s Bumiputra-Commerce Holdings Bhd (BCHB), the listed vehicle of CIMB Group, the Malaysian group said on Monday.
TPG will make the investment through BCHB’s Labuan subsidiary CIMB Bank (L) Ltd, by subscribing to bonds and warrants in a private offering, it said in a statement.
“Under the subscription agreement, TPG will subscribe for up to US$150 million worth of two-year senior unsecured bonds, which will yield an annual coupon of 3 percent,” the statement said.
“In addition, TPG will receive approximately 50 million warrants to purchase ordinary shares of BCHB at a strike price of 10 ringgit per share, exercisable at any time over a five year period.”
The proceeds of the sale will be used to repay existing borrowings and fund working capital at BCHB, and will be subject to the necessary shareholder and regulatory approvals, the statement added. (Reporting by Faisal Aziz; Editing by David Holmes)