PETALING JAYA: Capital A Bhd
’s logistics arm, Teleport Everywhere Pte Ltd, has entered into an agreement to issue US$50mil or about RM205mil in redeemable convertible perpetual securities (RCPS) to funds managed by HPS Investment Partners.
In a filing with Bursa Malaysia, Capital A said Teleport, a 93.48%-owned subsidiary, signed a subscription agreement with HPS for the issuance, valuing Teleport at US$500mil.
RCPS are perpetual capital instruments with no fixed maturity, although HPS has the option to require redemption beginning five years from the closing date.
Teleport may also redeem the securities from two to five years after completion, subject to the terms of the agreement.
The RCPS may be converted into ordinary shares of Teleport upon the occurrence of certain events, such as an initial public offering or a trade sale.
Capital A said its shareholding in Teleport would not be materially diluted following any conversion, and Teleport would remain a subsidiary of the group.
