KUALA LUMPUR (Sept 23): Land and General Bhd (L&G)’s largest shareholder Mayland Parkview Sdn Bhd, today further converted 64 million irredeemable convertible unsecured loan stocks (ICULS) into new shares, bringing its shareholding in the property developer to 307.42 million shares or 30.33% direct stake, another step closer to the 33% mandatory general offer (MGO) threshold.

In a filing with Bursa Malaysia today, L&G said Mayland Parkview had on Monday (Sept 22) converted the ICULS into 64 million new shares.

Earlier on Sept 18, Mayland Parkview had converted 140 million ICULS into 140 million new shares in L&G. Following the conversion, Mayland Parkview’s holding in L&G rose to 243.42 million shares or 25.9% stake as of last week.

According to L&G annual report 2014, as at July 21 this year, Mayland Parkview controlled 240.371 million or 48.63% ICULS, being L&G’s top ICULS holder.

It is worth noting that after the two major conversions on Sept 18 and 22, involving 204 million ICULS in total, Mayland Parkview still holds 36.371 million ICULS at the moment.

When contacted by The Edge Financial Daily today, L&G Chief Financial Officer Ng Kee Chye said that assuming Mayland Parkview were to convert all its remaining ICULS, its stake will be raised from 30.33% to 32.73%.

Before any of the conversion, Mayland Parkview had 14.73% interest in L&G as at July 21, 2014.

During L&G’s annual general meeting yesterday (Sept 22), some minority shareholders raised concerns over the possibility of it being taken private, should Mayland Parkview’s interest in the property company reach 33%, triggering an MGO.

“As long as Mayland Parkview’s shareholding is below 33%, there is no concern about that. I can’t answer that on behalf of the major shareholder, but there is no indication from them [to take L&G private], and there was no such discussion,” said L&G’s Managing Director Low Gay Teck.

To recap, the five-year ICULS was issued on Sept 25, 2013, at nominal value of 13 sen apiece. Expiring on Sept 24, 2018, its coupon rate is 1% per annum on the nominal value, payable on an annual basis.

According to Low, more than 598 million ICULS were issued last year. Up to last week, he said about 450 million ICULS have been converted, with some 140 million ICULS still outstanding.

It is worth noting that Andrew Chiu Wah Wai was appointed as a non-executive director at L&G on April 1 this year.

A citizen of Hong Kong, the 25-year-old Wah Wai is the son of Tan Sri David Chiu, who is the controlling shareholder of Prestige Aspect Sdn Bhd — the holding company of Malaysia Land Properties Sdn Bhd and its subsidiaries, better known as Mayland Group.