KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) stands to post an estimated net gain of RM229.94 million from the disposal of AmBank (M) Bhd and AmBank Islamic Bhd's bad loans to special purpose vehicles (SPVs) under Aiqon Capital Group Sdn Bhd.
The related-party transaction, which was first announced on January 3, saw AmBank (M) and AmBank Islamic's non-performing loans totalling RM553.91 million being sold to the SPVs.
"The net gain from the proposed disposal is expected to enhance the earnings per share and net asset per share of AMMB by 7.6 sen," Ambank Group said in its Bursa Malaysia filing today.
The disposal is part of the group's debt recovery strategy to strengthen both AmBank (M) and AmBank Islamic's respective loan/financing management, resolution processes and to monetise the portfolios, which comprise 537,068 accounts.
The group previously said the proceeds from the proposed disposal would be used by AmBank (M) and AmBank Islamic for working capital within one year of the transaction's completion.