First Sponsor revamps cash call with new rights, bonus issue

Singapore

HONG Leong-linked property developer First Sponsor Group, which had earlier withdrawn a rights issue involving warrants exercisable into convertible securities, has come back with a new cash call.

It is now proposing to undertake a rights issue, in which the warrants may be converted directly to shares, along with a bonus issue to raise up to S$399.3 million.

Under the rights issue, shareholders are entitled to one Series 2 convertible security for every seven common shares held, priced at S$1.30 each, which carries a 3.98 per cent distribution rate. These perpetual securities may be exchanged for common shares at an initial conversion price of S$1.30 …