Hong Kong's Cosway announces tender offer for convertibles due 2019

By Angela McDaniels

Tacoma, Wash., Feb. 9 - Cosway Corp. Ltd. said a tender offer for its HK$1,579,384,218 of outstanding noncallable convertible loan securities due 2019 will begin on Feb. 10 and end on March 2.

The offer is being conducted by CCB International Capital Ltd. on behalf of Berjaya Cosway Corp. Bhd., which plans to take Cosway private.

The conversion price is HK$0.20 per share.

CCB will offer HK$1.10 for each HK$0.20 principal amount of convertibles. This price is the same amount that CCB is offering for each of Cosway's outstanding shares and is a premium of 34.15% over the company's HK$0.82 closing share price on Feb. 8.

The offer is not subject to the receipt of any minimum amount of convertibles.

Cosway issued HK$2.19 billion of the convertibles on Dec. 8, 2009. The interest rate was initially 1% and stepped up to 3.5% after two years.

Cosway, formerly known as Berjaya Holdings (HK) Ltd., is a direct seller of consumer products based in Hong Kong. Berjaya Cosway is a subsidiary of Berjaya Corp. Bhd., a conglomerate based in Kuala Lumpur, Malaysia.

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