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Property News

E&O executive chairman, executive director up stake to 50.39% via RM14.1 mil loan stock conversion

KUALA LUMPUR (Sept 29): Eastern & Oriental Bhd’s (E&O) executive chairman Datuk Tee Eng Ho and his brother, executive director Tee Eng Seng, raised their stake in the property developer to 50.39% via the conversion of irredeemable convertible unsecured loan stocks (ICULS).
According to a bourse filing on Friday, Eng Seng and Eng Ho’s vehicle Kerjaya Prospek Development (M) Sdn Bhd on Sept 27 converted 60 million ICULS to shares at 23.5 sen apiece — a cumulative RM14.1 million.
Following the ICULS conversion, the brothers’ shareholding in E&O rose to 897.59 million shares or a 50.39% indirect stake. Of this, 9.82% is held under Kerjaya Prospek Development.
It is worth noting that Eng Seng and Eng Ho serve as non-executive chairman and executive director of construction outfit Kerjaya Prospek Group Bhd, of which they are also substantial shareholders with indirect stakes of 70.5% and 70.02%, respectively.
Back in January this year, E&O fixed a rights issue of ICULS at an issue price of 23.5 sen per unit. The conversion price was also fixed at 23.5 sen each at a ratio of one ICULS for one new share.
The rights issue’s subscription is aimed at raising between RM178.22 million and RM255.76 million in fresh capital, excluding conversion.
The rights issue of the five-year loan stocks, which offer a coupon rate of 3.8% per annum, was on the basis of three ICULS for every four existing shares held.
Shares in E&O ended unchanged at 67 sen, giving the group a market capitalisation of RM1.17 billion.
Meanwhile, Kerjaya Prospek shares closed two sen or 1.56% higher at RM1.30, valuing the company at RM1.65 billion.
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Source: EdgeProp.my

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