Concrete-pipe maker K Wah Construction Materials proposes to issue new shares at a hefty premium to the market price to redeem a premature $306 million convertible note from ultimate parent K Wah International Holdings. The note, to expire in 2002, will be redeemed via a combination of new K Wah Construction shares worth $74.8 million and $231.2 million in cash. The shares are to be sold at $2.13 each compared with yesterday's closing of 45 cents.