Maxi-Cash Financial Services, on Dec 31, announced that the company has purchased $500,000 worth of the 6.35% bonds it issued from Koh Wee Seng for a purchase price of $514,776.71.

The bonds are due 2022.

Koh is a director and controlling shareholder of the company, making this an interested person transaction.

The value of the bond purchase represents some 0.37% of the group’s latest audited net tangible assets (NTA) of $138.8 million as at Dec 31.

SEE:Maxi-Cash posts 39% drop in 1Q earnings to $1.8 mil on higher expenses

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The transaction brings the total value of the bond purchases by Koh for the financial year ended Dec 31, 2020, to $6.43 million, or 4.63% of the group’s NTA.

Maxi-Cash says the purchase of the bond would allow the group to “reduce costs of debt arising from interest accrued up to the maturity of the bonds in July 2022”.

The total value of all interested person transactions entered between the group and all interested persons for FY2020 comes up to some $34.4 million, or 24.81% of the group’s NTA.

Shares in Maxi-Cash closed flat at 16.8 cents on Dec 31.