Interesting announcement just put out by...

Interesting announcement just put out by LG

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_8AE9D5B3508EE15C482579CE007F834B/$file/LGCannct_ConvertibleBonds27March2011.pdf?openelement

Seems they intend to raise S$30m via CBs. I think it’s a hybrid form of Debt for Equity. Basically the Bond holders get paid an interest rate for the money they lend and at a later date that money can be converted to shares in LG if the bond holder so desires.

LG intends to use 20% of the money raised (say $6m) as working capital on SBL.

45% of the money raised will be put aside for M&A, JVs and strategic alliances and maybe used for any other purpose that the directors see fit on a short term basis.

Hopefully we’ll hear more from LG in relation to SBL in the next day or so.