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First Sponsor almost fully redeems convertible perps ahead of proposed rights issue

MAINBOARD-LISTED First Sponsor Group said on Tuesday night that it has converted into shares and cancelled S$159.6 million or 98.4 per cent in initial aggregate principal amount of its Series 1 perpetual convertible capital securities.

This was after it had converted and cancelled an additional S$12.8 million or 7.9 per cent of the initial aggregate principal amount of the 3.89 per cent securities between April 8 and April 16 of this year.

The Singapore-based property developer with development projects in China and the Netherlands intends to redeem all of the outstanding Series 1 securities after the completion of its proposed rights issue and bonus issue of warrants. (see amendment note)

First Sponsor on March 25 proposed to issue Series 2 perpetual convertible capital securities - with free detachable warrants that may be converted directly into shares - along with a bonus issue to raise up to S$399.3 million.

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The proposed exercises are subject to shareholder approval at an annual general meeting on April 24.

First Sponsor’s key controlling shareholders are Hong Leong Group Singapore, through its shareholding interests in Millennium & Copthorne Hotels plc, and Tai Tak Estates Sendirian Berhad.

First Sponsor shares were trading flat at S$1.28 on Wednesday as at 9.18am.

Amendment note: An earlier version of this article incorrectly stated that First Sponsor is a China-based property developer when in fact it is a Singapore-based property developer with development projects in China and the Netherlands. The article has been revised to reflect this.