Through the offer, each preference shareholder is entitled to sell 10% of his or her shares held as at 5.30pm on June 2. Preference shareholders may also put more than 10% of their shares up for tender if other shareholders do not accept their full entitlement under the offer. However, the 26.8 million limit still stands.
City Developments Limited (CDL) is seeking to buy back 10% of its preference shares, or about 26.8 million in preference shares, through an off-market equal access offer. The group is offering preference shareholders 78 cents per preference share.
The offer comes after CDL’s shareholders approved a general mandate for the board to purchase non-redeemable convertible noncumulative preference shares at its annual general meeting (AGM) on April 23.
