Dr Chen Lip Keong has been given the green light by NagaCorp shareholders to complete the concurrent conversion of his TSCLK Complex Convertible Bonds and NagaCity Walk Convertible Bonds and the Whitewash Waiver, with the NagaCorp CEO now set to become the company’s majority stakeholder.
The resolution was passed at an extraordinary general meeting on Friday, with 91% of voting shareholders approving the move. Completion of the issuance of the shares, which is expected to take place before 18 August, will see Dr Chen’s stake in NagaCorp rise from 38.98% to 65.42%.
“Dr Chen has indicated to the company that upon the fulfilment of the relevant conditions, he will immediately deliver to the company the relevant unconditional notices of conversion and the other requisite documents in accordance with the terms of the instrument dated 17 May 2016 constituting the NagaCity Walk Convertible Bonds and the instrument dated 30 December 2016 constituting the TSCLK Complex Convertible Bonds in order for the company to proceed to issue the conversion shares,” NagaCorp said in a filing to the Hong Kong Stock Exchange.
NagaCorp announced in March that Dr Chen was looking to gain control of the company by exercising conversion rights in respect to TSCLK Complex Convertible Bonds issued to him in December. It subsequently announced the concurrent conversion in June.
The TSCLK Complex Convertible Bonds were originally issued to Dr Chen following the acquisition of his former company TSC Inc by NagaCorp. TSC holds the rights to the neighboring TSCLK Complex, better known as Naga2, which is due to open later this year. The NagaCity Walk Convertible Bonds relate to a separate deal which saw NagaCorp acquire City Walk Inc, the holding company for the NagaCity Walk project that will connect NagaWorld with Naga2.
