Between Sept 9 and 10, GSH Corporation GSH: BDX +2.34% executive chairman Sam Goi Seng Hui acquired 304,600 shares at 17.0 cents per share.

 

With a consideration of S$51,782, this increased Mr Goi' s total interest in the property developer, hotel and resort operator from 63.58 per cent to 63.59 per cent.

 

Between Aug 26 and 31, GSH Corporation GSH: BDX -2.81% executive chairman Sam Goi Seng Hui acquired 68,297,733 shares for a consideration of S$11,610,219. At 17.0 cents per share, this increased his total interest in the property developer, hotel and resort operator from 60.09 per cent to 63.58 per cent.

 

This followed Mr Goi' s acquisition of 100,000 shares at 16.8 cents per share on Aug 25 and 5,205,000 shares at 16.8 cents per share between Aug 13 and 18.

 

On Aug 25, GSH Corporation GSH: BDX +1.2% executive chairman Sam Goi Seng Hui acquired 100,000 shares of the company for a consideration of S$16,800.

 

At 16.8 cents per share, this increased his total interest in the property developer, hotel and resort operator from 60.08 per cent to 60.09 per cent.

 

This followed Mr Goi' s acquisition of 5,205,000 shares at 16.8 cents per share between Aug 13 and 18.

GSH Corporation plans to raise $78 million via a renounceable rights issue of convertible bonds in a bid to improve its liquidity and financial position by being less reliant on external funding.

Entitled shareholders subscribe four convertible bonds priced at $1 each for every 100 existing shares they hold. 

The convertible bonds have a maturity date of three years from the issue date of the bonds, at a coupon rate of 5.20% per annum, payable on a semi-annual basis. 

Holders of the convertible bonds will have the right to convert their convertible bonds into conversion shares priced at 17 cents, which is a discount of 9.6% off the June 30 closing price of 18.8 cents.

The convertible bonds will be used to repay shareholders&rsquo loans including an amount of up to $32 million due to Sam Goi, GSH&rsquo s executive chairman.

 

Goi, who controls 59.82% of the company, will give an irrevocable undertaking to subscribe to his entire allotment of the bonds, and to also mop up any remaining excess of this issuance, and thereby, raising his stake in the company.

&ldquo This rights issue of convertible bonds, will allow the group to enhance its liquidity, enable it to navigate through the pandemic and put it in a strong financial position, for the recovery of regional

economies, as vaccination rates increase,&rdquo says Goi.

The company, which has property interests in Malaysia and China, plans to accelerate the launch of its first luxury residential and hotel development project in Bishan District, near Chongqing. 

The hotel will be fully built by end of next year while the first phase of the residential component is targeted to commence in the third quarter of 2021 and complete by 2022, says Goi.

 

GSH Corporation has obtained loan facilities of up to S$150 million in an agreement dated Dec 31, 2020, the mainboard-listed property developer announced on Sunday.

 

In a regulatory statement, the company said that the agreement requires that the controlling shareholder Sam Goi Seng Hui and his family including his siblings do not reduce their stakes in GSH to 35 per cent or below.

 

They also should not lose their control of the casting of at least 35 per cent of the maximum number of votes that might be cast at a general meeting.

 

And if any shareholder or group of shareholders acting in concert owns a greater stake in GSH than that held by the Mr Goi and his family members, that would be deemed a breach of the agreement as well.

 

The unnamed lender could demand GSH repay the loan, if any of the conditions on the control of GSH is breached.

GSH Corporation has priced its S$30 million two-year notes at a fixed annual interest rate of 5.20 per cent, it said on Thursday.

 

The notes are expected to be issued on Sept 17 and will mature on Oct 21, 2022.

 

They form Tranche 2 of GSH' s Series 4 notes due 2022 under the company' s S$800 million, multicurrency, medium-term note programme established in 2016. This issuance will be consolidated with the first S$50 million tranche of Series 4 notes, also due 2022, which were issued last October.

 

DBS Bank has been appointed as dealer for the Series 4 Tranche 2 notes.

 

The net proceeds from the issuance will be used for general corporate purposes, including refinancing of borrowings, financing investments, general working capital and capital expenditure requirements of the company and its subsidiaries.

 

Under the deal terms, if a change-of-shareholding event occurs, GSH will, at the option of any noteholder, redeem the Series 4 notes together with interest accrued to the date fixed for redemption, on the date falling 30 days from the date of the notice.

 

A change-of-shareholding event occurs when GSH executive chairman Sam Goi Seng Hui and his immediate family members cease to own at least 35 per cent of GSH.

GSH Corporation on Tuesday proposed to repurchase up to S$20 million of its S$70 million notes due 2020 in cash at par, together with applicable accrued interest.

 

The Series 002 notes carry a coupon of 5.15 per cent and fall under the property developer' s S$800 million multicurrency medium-term note programme.

 

The proposed repurchase will start on Tuesday until June 8, with DBS Bank acting as the buyback agent.

 

The company said it is undertaking the repurchase as part of its capital-management strategy to prudently manage its interest cost.

 

GSH' s directors who are noteholders have voluntarily undertaken to limit their own tender amount to around 28.5 per cent of each director' s holdings in the notes - the proportion of the proposed repurchase against the total principal outstanding.

 

As at Tuesday, the company' s directors together hold an aggregate principal amount of notes which translate to around 39 per cent of the total notes outstanding.

https://www.businesstimes.com.sg/companies-markets/gsh-proposes-to-repurchase-up-to-s20m-of-notes-due-2020