OUE: Majority of holders S$150 million 3 percent bonds tender for redemption

The OUE Downtown 2 building in Signapore’s Central Business District. Credit: Shenton WireThe OUE Downtown 2 building in Signapore’s Central Business District. Credit: Shenton Wire

Around 89.67 percent of OUE’s S$150 million 3.0 percent exchangeable bonds due 2023, or S$134.5 million worth, were tendered for purchase by the company for cash, the property developer said in a filing to SGX Wednesday.

Tendering the bonds means the bondholders have automatically given a proxy the right to vote in favor of an extraordinary resolution on the proposed early redemption at a meeting on 26 June, the filing said.

If passed, the resolution will be binding on all bondholders, whether or not they voted in favor, OUE has previously said.

Only S$15.5 million of the bonds would be outstanding if all the tenders are accepted, OUE said.

The bonds are exchangeable into OUE Hospitality Trust units.

In April, OUE Hospitality Trust and OUE Commercial REIT proposed merging in a deal which would create one of the largest diversified REITs listed in Singapore, with assets of around S$6.8 billion.

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