KUALA LUMPUR (Feb 2): 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 50.7% via the conversion of irredeemable convertible unsecured loan stocks (ICULS).

According to a bourse filing on Friday, the Tee brothers’ investment vehicle Kerjaya Prospek Development (M) Sdn Bhd converted 50 million ICULS to shares at 23.5 sen apiece — a cumulative RM11.75 million.

This bumped the brothers’ stake in the property developer up by 2.58% to an indirect stake of 50.71%.

Of this, 11.61% is held under Kerjaya Prospek Development, while the remainder is held under vehicles Amazing Parade Sdn Bhd, Javawana Sdn Bhd, and Summerchrome Sdn Bhd.  

Both Eng Seng and Eng Ho are major shareholders of Kerjaya Prospek Group Bhd — with a 70.02% stake via Amazing Parade and Egovision Sdn Bhd. Eng Ho serves as non-executive chairman and Eng Seng as executive director in Kerjaya Prospek Group.  

Back in January last 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, to fund its existing and future projects as well as working capital.

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 two sen or 2.23% at 87.5 sen, valuing the group at RM1.63 billion.

Kerjaya Prospek shares closed two sen or 1.16% at RM1.70, giving the construction outfit a market capitalisation of RM2.15 billion.