IHC shareholding change triggers redemption of bonds

NOTEHOLDERS of International Healthway Corporation's (IHC) multi-currency medium term note programme are entitled to redeem their bonds due to a change in the ownership of the company.

In an exchange filing on Saturday, the firm said it is of the view that a change in shareholding event under the bond covenant has occurred.

Noteholders must deposit their bonds and all unmatured coupons with a duly completed option exercise notice by Mar 4, which is the fifteenth day from the notice date. The company is also obliged to redeem the relevant notes on April 18, 60 days from the notice date.

Under the bond covenant, a change of shareholding event is deemed to have taken place when the total shareholding of co-founders Fan Kow Hin, Jong Hee Sen, Aathar Ah Kong Andrew and their immediate family members has fallen below 30 per cent.

Mr Fan had notified the firm that his interest in the company had fallen from 13.4 per cent to 4.67 per cent on Feb 17.

A day earlier, OUE, through its vehicle Treasure International Holdings, had launched a takeover bid for the company, after acquiring 35.77 per cent of IHC from four sellers: Ching Chiat Kwong, Eric Low, Mr Low's sister Audrey Low and another shareholder called Tee Wee Sian. Mr Ching and Mr Low run boutique property developer Oxley Holdings; the duo and Mr Tee are substantial shareholders of Oxley.

This brings OUE's stake to 57.6 per cent.

IHC said it has only received confirmation from Mr Jong that his interest in the company has not changed. It has also not received any similar confirmation from Aathar Ah Kong Andrew.