SIA directors opt not to subscribe for rights MCBs

Most directors of SIA have chosen to let their rights mandatory convertible bonds (MCBs) lapse without exercising them, despite proposing the MCB rights issuance to shareholders as part of larger cash call in April. SIA CE Goh Choon Phong let his provisional allotments in respect of 3.34m rights MCBs lapse last week, according to a Singapore Exchange filing on Monday. SIA non-executive chairman Peter Seah also let his allotment of 73,160 rights MCBs lapse last week, filings showed. However, both Goh and Seah have applied to take up all their rights shares, and their actual allocations will be decided at a later date. SIA's rights exercise involved the issue of 295 rights MCBs for every 100 SIA shares held. Each of the rights can be exercised at S$1 for one MCB. The rights shares were issued on the basis of three rights shares for every two existing SIA shares owned by shareholders.<br/>