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(Nov 20): Yu-Foo Yee Shoon, an independent director of KOP, acquired a 0.05% stake in the company a few days after it entered into a loan agreement with its controlling shareholder. On Nov 13, Yu-Foo bought 540,000 shares in KOP at 9.2 cents apiece, which amounted to a total sum of $49,680. Prior to this, she had no shares in the company.

From 2004 to 2011, Yu-Foo was minister- ofstate at the Ministry of Community Development, Youth and Sports. She was a Member of Parliament from 1984 to 2011, making her the longest-serving female politician in the country. In addition to her board role at KOP, she also holds directorships at ARA Trust Management (Suntec) and Singapura Finance. She serves as senior adviser on the international advisory panel to water and energy solutions company Hyflux, special adviser to Global Yellow Pages and adviser to Nuri Holdings (S).

KOP engages in hospitality, real estate development and investment, real estate origination and management services, and entertainment. For FY2017 ended March 31, these segments accounted for 70.3%, 20.8%, 4.5% and 4.4% of the company’s revenue, respectively. KOP’s key developments include the Ritz Carlton Residences in Singapore and Montigo Resorts in the Indonesian tourist spots of Nongsa in Batam and Seminyak in Bali.

The company recently gained a new controlling shareholder in billionaire Sam Goi, executive chairman of food manufacturer Tee Yih Jia Group and property developer GSH Corp. On Oct 7, Goi subscribed to 221.6 million shares in KOP at five cents apiece in a placement that allowed KOP to raise $11.1 million. He now owns a 20% direct stake in the company. Following his move, KOP shares surged as much as 22%.

KOP’s largest shareholders are executive chairman Ong Chih Ching and group CEO Leny Suparman, who control 44.6% and 41.5%, respectively, as at Oct 20. The bulk of their stakes are held through KOP Group, which holds 38.7% of KOP’s shares. According to KOP’s FY2017 annual report, Ong and Suparman are substantial owners of KOP Group. On Nov 9, KOP announced that it had entered into a loan agreement with Goi for an aggregate principal amount of $45 million. The loan is convertible into fully paid-up ordinary shares. The conversion price will be nine cents, or the volume-weighted average price of the stock for five market days before the conversion option notice — whichever is lower. The loan has an interest rate of 7% a year.

KOP will use the funds for the capital requirements of its 30% equity interest in Snow Star Properties Co, a joint-venture company involving Chinese developers Shanghai Harbour City Development (Group) and Shanghai Lujiazui (Group) Co. Snow Star will be developing Wintastar, an integrated winter- themed resort in Shanghai with skiing and winter sports facilities. The resort is targeted to open by 2020. Separately, KOP announced in August last year that it is working with Indonesian developer Sinarmas Land to build a high-end, integrated mixed-use development, Nuvasa Bay, in Batam.

For 2QFY2018 ended Sept 30, KOP made a loss of $2.9 million. The company had reported a profit of $369,000 in the same quarter a year ago. The loss came in spite of a 48% rise in revenue to $5.3 million. Revenue was boosted by the handover of completed properties at Montigo Resorts, Nongsa during the quarter. The group’s hospitality segment also reported higher occupancy rates at Montigo Resorts in Nongsa and Seminyak. Meanwhile, the entertainment segment enjoyed higher rental income from higher occupancy at KOP Building. However, the company saw a 46% increase in administrative expenses to $4.7 million. This was attributed to net foreign exchange losses from the translation of payables from US dollars to Singapore dollars.

In commentary accompanying the results, KOP says that it will be prudent with its expansion plans. “In view of macro uncertainties and the downturn of the global economy, the group will focus on growth of existing businesses and only expand cautiously under opportunistic and strategic circumstances,” it says.

As at Sept 30, KOP had cash of $2 million and debt of $35.4 million. The company’s shares closed at nine cents on Nov 15, giving it a market capitalisation of $100.8 million.

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