Mainboard-listed property and hotel company Overseas Union Enterprise has scrapped plans for a convertible bond issue, citing current market conditions.
Last month, OUE had proposed to issue up to S$200 million dollars of notes due in 2015.
The notes would have been convertible into new ordinary shares.
In a stock exchange filing Tuesday, OUE said its controlling shareholder, Indonesia’s Lippo Group, would place out 18 million OUE shares at S$11.50 each, raising S$207 million in all.
OUE says the placement will close on June 18 and the shares will be sold to institutional and sophisticated investors.
Following the placement, Lipp will hold about 79 per cent of OUE.
Source : Channel NewsAsia – 15 Jun 2010