Pavillon to issue 3-year, 5% convertible bonds to pay for Johor Baru properties

Singapore

MAINBOARD-LISTED Pavillon Holdings on Friday said it will pay the remaining RM29.9 million (S$9.84 million) for its Johor Baru properties acquisition by issuing three-year convertible bonds, at 5 per cent interest per annum.

Interest will be payable every six months, and the bonds will have a conversion price of RM0.3025 per share. This price represents an initial conversion premium of 108 per cent against Pavillon's closing price of S$0.048 a share on Dec 22.

According to Pavillon, the convertible bonds will be issued to Low Eng Heng, who is a majority shareholder of Hock Der Realty Sdn Bhd and Ascent Asia Sdn Bhd - the two companies which entered into sale and purchase agreements with Pavillon fo…