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Mayland Parkview’s stake in L&G inches closer to MGO threshold

KUALA LUMPUR: Land and General Bhd (L&G)’s largest shareholder, Mayland Parkview Sdn Bhd, yesterday further converted 64 million irredeemable convertible unsecured loan stocks (ICULS) into new shares, bringing its shareholding in the property developer to 307.42 million shares or 30.33% direct stake, another step closer to the 33% mandatory general offer (MGO) threshold.

In a filing with Bursa Malaysia yesterday, L&G said Mayland Parkview had on Monday converted the ICULS into 64 million new shares.

Last Thursday, Mayland Parkview had converted 140 million ICULS into 140 million new shares.

Following the conversion, Mayland Parkview’s holding in L&G rose to 243.42 million shares or 25.9% stake as of last week.

According to L&G’s 2014 annual report, as at July 21 this year, Mayland Parkview controlled 240.371 million or 48.63% ICULS, being L&G’s top ICULS holder.

After the conversions last Thursday and on Monday, involving a total of 204 million ICULS, Mayland Parkview still holds 36.371 million ICULS.

When contacted, L&G chief financial officer Ng Kee Chye said that assuming Mayland Parkview were to convert all its remaining ICULS, its stake would be raised from 30.33% to 32.73%.

As at July 21, Mayland Parkview had 14.73% interest in L&G, according to its annual report.

During L&G’s annual general meeting on Monday, some minority shareholders raised concerns over the possibility of it being taken private should Mayland Parkview’s interest in the company reach 33%, triggering an MGO.

Under Malaysian rules, an offer to acquire the remaining interest in a company must be extended to the other shareholders once the major shareholder or together with parties acting in concert holds more than a 33% interest.

“As long as Mayland Parkview’s shareholding is below 33%, there is no concern about that.

“I can’t answer that on behalf of the major shareholder, but there is no indication from them [to take L&G private] and there was no such discussion,” L&G managing director Low Gay Teck had said.

The five-year ICULS with a coupon rate of 1% per annum were issued on Sept 25, 2013, at nominal value of 13 sen apiece and will expire in 2018.

According to Low, more than 598 million ICULS were issued last year. Up to last week, 450 million ICULS have been converted, with some 140 million ICULS still outstanding.


This article first appeared in The Edge Financial Daily, on September 24, 2014.

 

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