Who's buying KSL warrants as 34.4% stake traded off-market

KUALA LUMPUR: A total of 63 million warrants of property company KSL Holdings Bhd, KSL-WA, was traded in an off-market deal representing 34.4% stake yesterday, based on the 182.91 million warrants issued.

The warrants were traded at 86 sen each, or 11 sen below the current price of 98 sen, according to market data.

The warrants that were issued in late August, 2011 has a conversion price of 80 sen each that will mature on August 19, 2016.

The warrants were down three sen or 2.97% to close at 98 sen.

The warrants initially had a conversion price of RM1.60 each but was later revised due to one-for-one bonus issue totalling to 393.1 million new shares.

Following the bonus issue, 91.5 million of additional warrants were listed and quoted on December 22, 2014.

Although the parties involved in the transaction were not immediately revealed, it was believed that the transaction of that much volume could be done by the major shareholders of KSL that belonged to the Ku’s family that collectively directly and indirectly hold over 37% of the company’s stake as well as warrants largely through their investment vehicle, Premiere Sector Sdn Bhd,

The little known Johor-based developer made the headlines some years ago when when US-based Franklin Templeton Asset Management Ltd bought a 5% stake in company in March 2011.

The acquisition in KSL actually shows how Mark Mobius (executive chairman of Templeton Asset Management Ltd) and Templeton invest and it is a good investment.

Templeton executive chairman Mark Mobius was quoted in a Bloomberg report as saying that he was impressed with KSL’s diversified property project and business model.

Now, KSL has shown a strong set of financial figures and iconic development in the past three years as its projects in Johor Bahru and Klang took off.

KSL City integrated development just 10 minutes away from the Johor Baru Customs, Immigration and Quarantine Complex.

The group also has rental income from two properties leased to grocery chain Giant in Muar and Nusa Bestari.