Kohinoor Foods Updates on Conversion of FCCBs

Kohinoor Foods Ltd had issued US$ 20,000,000 1% Unsecured Convertible Bonds due 2010 (the "Bonds") in the year 2005.

The Company has satisfied Conditions 5.2.1 of the terms and conditions of the Offering Circular dated September 12, 2005 for Mandatory Conversion of 50 percent of the Bond value held by each Bondholder into shares of the company. Conditions 5.2.1 states:

"The Issuer has an option to serve 30 days' written notice in accordance with condition 16 on the Bond holders requiring mandatory conversion at their Accreted Principle Amount, of (a) 50 percent of the Bond value held by each bondholder into shares if the Market Price has equaled or exceeded 130 percent of the conversion price (which is Rs 85/- as on date) for a period of 20 out of any 30 consecutive Trading Days (first mandatory conversion option), the last of which occurs not more than 30 days prior to the date upon which notice of such option is published...".

The volume weighted average price of the shares of the Company was quoted above Rs 110.50 (130% of Rs 85/-) during the period from January 01, 2008 to February 07, 2008 at National Stock Exchange and accordingly the Conditions 5.2.1 stands fulfilled.

The Company is giving 30 days notice to the Bondholders on February 26, 2008 for mandatory conversion of 50% of the bond value held by each bond holder."

Source : Equity Bulls

Keywords