Kamdar ICULS to be suspended from Oct 23

Kamdar ICULS to be suspended from Oct 23

Tags: Kamdar Group (M) Bhd | Kamdar ICULS | Kamdar Sdn Bhd | Woo Hing Brothers

Written by The Edge Financial Daily
Thursday, 08 October 2009 00:45

KUALA LUMPUR: Kamdar Group (M) Bhd’s five-year 3% irredeemable convertible unsecured loan stocks 2004/2009 (ICULS) will be suspended from trading from Oct 23 to facilitate the conversion of the ICULS into shares. The ICULS mature on Nov 9.

In a circular to the ICULS holders on Oct 7, Kamdar, a textile retailer, said that after the maturity date, the ICULS shall cease to bear interest and the remaining outstanding ICULS would be automatically converted into new Kamdar shares on a one-for-one basis.

As at Sept 14, 2009, Kamdar had RM71.59 million nominal value ICULS outstanding. The ICULS, which have a nominal value of RM1 each, closed at 24.5 sen on Oct 7, while Kamdar shares were last traded at 27 sen.

The ICULS were issued on Nov 10, 2004, during the reverse takeover of Woo Hing Brothers Bhd by the Kamdar group.

In the reverse takeover, Woo Hing Brothers acquired the entire interests in Kamdar Sdn Bhd, Pusat Membeli-Belah Kamdar Sdn Bhd, Pusat Membeli-Belah Kamdar (Penang) Sdn Bhd, Kamdar (South) Sdn Bhd and Kesar Sdn Bhd for a consideration of RM196.43 million. The purchase was satisfied by the issuance of 124.43 million new shares of RM1 each and the RM72 million ICULS.

Woo Hing had also acquired 100% equity interests in Kamdar Holdings Sdn Bhd, Kamdar Stores Sdn Bhd and Mint Saga Sdn Bhd for a total RM60 million satisfied via the issuance of RM60 million nominal a value five-year 4% bonds together with 50 million detachable five-year warrants.

As a result of the exercise, the Kamdar group took over the listing status of Woo Hing and was admitted to the Main Board of Bursa Malaysia on March 29, 2005, when it closed at its highest level ever of RM1.45. However, the company’s share price has since plunged to the current level of 27 sen, and as a result, brought down the value of the ICULS as well.

For the second quarter ended June 30, 2009, Kamdar’s net profit rose to RM1.86 million on revenue of RM43.68 million, compared to net profit RM201,000 a year earlier. The company has a market capitalisation of RM34.13 million comprising 126.4 million shares. Its market capitalisation is set to expand following the conversion of the ICULS into shares.

http://www.theedgemalaysia.com/business-news/150852-kamdar-iculs-to-besuspended-from-oct-23.html

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