Lion Div further cuts stake in Parkson to 1.45%

Lion Div further cuts stake in Parkson to 1.45%

Tags: Amsteel Corp Bhd | Excel Step Investments Ltd | LDHB | Lion Corp Bhd | Lion Diversified Holdings Bhd | Megasteel Sdn Bhd | Parkson Holdings Bhd

Written by Ellina Badri
Monday, 19 October 2009 22:30

KUALA LUMPUR: LION DIVERSIFIED HOLDINGS BHD []'s (LDHB) subsidiary Excel Step Investments Ltd disposed of a total 36.74 million shares representing a 3.62% stake in PARKSON HOLDINGS BHD [] between June 29, 2009, and Oct 19, 2009, for RM185.8 million cash, to partly settle its deferred cash payments.

In a statement today, LDHB said 16.74 million shares were sold in the open market, with the remaining 20 million disposed off via a placement through JPMorgan Securities (Malaysia) Sdn Bhd.

It said its deferred cash payments payable were from its RM100 million acquisition of a 11.1% stake in Megasteel Sdn Bhd in February this year and its purchase of RM450 million Lion Corp Bhd Class B(b) bonds from Amsteel Corp Bhd, also in February.

It also said the balance of the proceeds from its share disposal would be used to repay borrowings and for working capital.

LDHB said following the disposal, its stake in Parkson was now reduced to 1.45%, adding that Excel Step held RM228.8 million redeemable convertible secured loan stocks 2007/2010 convertible into 57.2 million new Parkson shares.

"The LDHB group's original costs of investment in the 36.74 million Parkson shares was approximately RM147 million and the investment was made in Sept 2007," it added.

It said as of today, it had disposed of a total of 55.24 million Parkson shares, or a 5.44% stake, for a total cash consideration of RM272.3 million.

Between Apr 24 and June 26, it had disposed of a 1.82% interest in Parkson via the open market for RM86.5 million cash.