KUALA LUMPUR (Dec 12): Kerjaya Prospek Property Bhd (KL:KPPROP) said it will redeem the outstanding 1.72 billion redeemable convertible preference shares (RCPS) issued in 2019 by the investment vehicle of its controlling shareholder Datuk Tee Eng Seng for RM292.07 million on Jan 9.
Kerjaya Prospek issued the redemption notice to the investment vehicle, Javawana Sdn Bhd, on Dec 9, according to the property development company’s bourse filing on Thursday.
The redemption at 17 sen per share is to be funded via a combination of RM290 million in bank borrowings and RM2.07 million in internally generated funds.
Kerjaya Prospek said the redemption of the RCPS is to pre-empt the mandatory conversion of the RCPS on a five-to-one basis on the maturity date to maintain the company’s compliance with the bourse’s public spread requirement.
The RCPS, with a five-year tenure and fixed dividend rate of 2% per year, is due for maturity on Jan 10, 2025.
Kerjaya Prospek's public shareholding stood at 25.85% as at Dec 9 and would fall to 15.89% — less than the required 25% — if the RCPS are converted.
The RCPS were part of a RM672.04 million purchase consideration to Javawana in 2019 for various assets owned by the Tee family. All in all, the assets were acquired for RM100 million cash, 196.91 million new shares issued at 17 sen per share, and 3.17 billion RCPS at 17 apiece.
Previously, Javawana had converted 1.45 billion RCPS into 290 million Kerjaya Prospek shares. Tee, who is Kerjaya Prospek's executive director, controls 365.85 million shares or a 72.07% stake in Kerjaya Prospek via Javawana.
Shares in Kerjaya Prospek ended unchanged at 67 sen on Thursday, giving the company a market capitalisation of RM388.7 million.