PETALING JAYA, FEB 16: Mah Sing Group Bhd is repurchasing RM315 million nominal value of its redeemable convertible secured bonds (CBs) at a purchase consideration of RM337.1 million.
To recap, the property developer had on June 10, 2011 issued RM325 million nominal value of CBs and on June 25, 2015 it announced the conversion of RM10 million nominal value of the CBs to 8.77 million 50 sen shares at RM1.14 conversion price.
“The CBs are currently in-the-money given the conversion price of the CBs of RM1.14.
The CBs repurchase allowed the company to avoid the issuance of approximately 276.3 million Mah Sing shares representing approximately 11.5% of the existing issued and paid-up share capital of Mah Sing as at Feb 12, 2016,” it told Bursa Malaysia yesterday.
Based on the purchase consideration of RM337.1 million and the conversion price, the effective price per share is RM1.22, representing a discount of 11.07%, 5.65% and 3.63% to the three-month, one-month and five-day volume weighted average market price of Mah Sing shares up to and including Feb 12, 2016 of RM1.3718, RM1.2930 and RM1.2659 respectively.
The CBs repurchase was funded via the balance proceeds from the rights issue of new Mah Sing shares with warrants undertaken by the company in February last year, as well as internally generated funds.
Mah Sing which entered into an buy back agreementyesterday said it will cancel the CBs the purchase consideration has been paid.