LBS BINA GROUP BERHAD Instrument Category Securities of PLC Instrument Type Preference Shares Description Adjustments to the conversion ratio of the existing redeemable convertible preference shares ("RCPS") in LBS Bina Group Berhad ("LBGB" or "Company") issued on 8 August 2017 in accordance with the Constitution of LBGB pursuant to the subdivision of every 1 existing ordinary share in LBGB into 2 ordinary shares in LBGB ("Subdivided Share(s)") ("Subdivision") and the bonus issue of new ordinary shares ("Bonus Shares") on the basis of 1 Bonus Share for every 10 Subdivided Shares held by the shareholders of LBGB at 5.00 p.m. on 26 February 2018 ("Entitlement Date") ("Bonus Issue") ("Adjustment") Listing Date 11 Aug 2017 Issue Date 08 Aug 2017 Issue/ Ask Price Malaysian Ringgit (MYR) 1.1000 Issue Size Indicator Unit Issue Size in Unit 115,448,037 Maturity Non Mandatory Maturity Date Not Applicable Name of Guarantor Not Applicable Name of Trustee Not Applicable Coupon/Profit/Interest/Payment Rate The Company shall at its discretion and subject to the availability of distributable profits pay out a targeted preferential dividends of 6% in each financial year calculated on the Issue Price of the RCPS from and including the Issue Date until the date of redemption of the RCPS. Coupon/Profit/Interest/Payment Frequency The preferential dividends, if declared, shall be payable annually in arrears, subject to availability of distributable profits. Although annual payments are anticipated as disclosed above, the Company may defer, in part or in whole, such payments depending on availability of distributable profits ("Deferred Dividends"). For avoidance of doubt, the Company is not obliged to pay any dividends or Deferred Dividends, as the case may be, in the event that it has insufficient distributable profits. Redemption Subject to the provisions of the Companies Act, 2016, and any other applicable legislation, the Company may at any time on or after the 5th anniversary of the Issue Date, at its discretion, redeem all (and not some only) of the outstanding RCPS by giving notice in writing not less than 30 days prior to the redemption date to the holders of RCPS of its intention to do so. Exercise/Conversion Period Not Applicable Exercise/Strike/Conversion Price Malaysian Ringgit (MYR) 2.2000 Revised Exercise/Strike/Conversion Price Malaysian Ringgit (MYR) 1.0000 Exercise/Conversion Ratio 2 : 1 Revised Exercise/Conversion Ratio 10 : 11 Mode of satisfaction of Exercise/ Conversion price Tendering of securities Settlement Type/ Convertible into Physical (Shares)
compare to LBS-PA Revised Exercise/Conversion Ratio 10 : 11, 10x.92=9.2/11=0.83 vs mother price 0.705, premium 18%
One will pay a lower premium of 18% instead of 39% in call warrants. On top of the lower premium, one also gets 6.6/.92 =7% of dividend p.a Also, if the overall interest rate is dropping, it is worth it for the Board of LBS to consider redemption on RCPS and refinance with a cheaper rate sukuk
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
compoundingeffect
20 posts
Posted by compoundingeffect > 2023-11-25 15:13 | Report Abuse
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2832365