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Omnicorp solicits consents to extend maturity of 4% convertibles
By Angela McDaniels
Tacoma, Wash., Oct. 13 - Omnicorp Ltd. is seeking bondholder consent to extend the maturity date of its HK$237 million 4% convertible bonds to Nov. 8, 2010 from Nov. 9, 2009, according to a company notice filed with the Stock Exchange of Hong Kong.
Bondholders are also being asked to approve an amendment that would allow holders to exercise their conversion rights even if that would make them obligated to hold a mandatory offer under the Hong Kong Code on Takeovers and Mergers as a result.
Omnicorp said it had HK$75.6 million of cash and cash equivalents as of June 30 and has been exploring different options for repaying the convertibles at maturity.
Sino-Forest Corp. holds HK$212,328,300 principal amount, or 89.59%, of the convertibles and 20.001% of the issued share capital of the company. If it exercised its conversion rights in full, it would hold 39.05% of the company's shares.
The amendment would allow Sino-Forest to convert its bonds, decreasing the amount of convertibles to be repaid at maturity. And according to the company, Sino-Forest has confirmed that it would make the mandatory offer if it converted its bonds.
Bondholders will vote on the proposal at a meeting, the date of which was not disclosed in the notice.
The company needs approval from the holders of the convertibles, shareholders and the Stock Exchange of Hong Kong.
Omnicorp is principally engaged in logging, the manufacture of electronic components and products, property holding and investment holding. The company is based in Hong Kong.
Sino-Forest is a Mississauga, Ont.-based commercial forestry operator in China.
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