OCBC will be among the largest shareholders of mainboard-listed HG Metal Manufacturing, following the bank's notice to convert nearly $3.18 million of a $10 million convertible loan into new ordinary shares of the group, HG Metal said yesterday.

HG entered into the convertible loan agreement with OCBC on Aug 15, 2006, under which the bank has the right to convert all or part of the loan into new ordinary shares.

With the conversion, HG, a stockist and manufacturer of steel products offering more than 2,000 different products of various dimensions for a variety of industrial and engineering applications, will issue 8.8 million new shares to OCBC. This works out to a conversion price per share of about 36.1 cents, and means that OCBC will own 4.76 per cent of HG's enlarged share capital, making it one of the group's largest shareholders.

'I am very pleased that OCBC has chosen to convert part of their convertible loan agreement with HG Metal in a relatively short period of four months,' said HG's chief executive, Wee Piew.

HG Metal's share price closed at 46.5 cents yesterday, up half a cent.