OUE rejects convertible bond issue plans

Mainboard-listed hotel and property firm Overseas Union Enterprise (OUE) has turned down plans for a convertible bond issue due to recent market conditions.

Last May, OUE had planned to issue notes of up to S$200 million due in 2015. These notes would be converted into new ordinary shares.

In a stock exchange filing, the firm said that Indonesian conglomerate Lippo Group, its controlling shareholder, would issue 18 million shares at S$11.50 per share, raising S$207 million in total.

OUE announced that the placement will close on 18 June 2010, and the shares will be sold to sophisticated and institutional investors.

After the placement, Lippo Group will hold around 79 percent of OUE.