Singapore stocks to watch Tuesday: BreadTalk, Sembcorp Industries, Thakral

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These are the Singapore stocks to watch on Tuesday, 22 May 2018:

BreadTalk

BreadTalk said its subsidiary Together Inc. entered a joint venture with Shenzhen Pindao Food & Beverage Management to bring popular Nayuki and Tai Gai beverage brands to Singapore and Thailand. The venture will also have right of first refusal to operate in Malaysia, Indonesia and the Philippines, the company said in a filing to SGX after the market close on Monday.

Together Inc. will hold 90 percent of the joint venture, named BTG-Pindao Venture, with Pindao holding the remainder, the filing said.

“There has been a growing demand for novelty tea beverages among younger consumers,” Henry Chu, BreadTalk CEO, said in the statement.

“It took us just three years to build both Nayuki and Tai Gai to the more than 100 stores currently in China, despite an landscape where international beverage chains were capturing the hearts of many young consumers,” Zhao Lin, CEO of Pindao, said in the statement. “BreadTalk Group believed in our ambition to rejuvenate the tea-drinking culture by introducing new ways to appreciate it.”

The joint venture isn’t expected to have a material impact on earnings in the current financial year, the company said.

Sembcorp Industries

Sembcorp Industries said its subsidiary Sembenviro Recycling signed a deal to divest its 60 percent stake in Sembcorp Tay Paper to Tay Paper Resources for S$6 million. The deal is expected to be completed by mid-2018, the company said in a filing to SGX after the market close on Monday. It wasn’t expected to have a material impact on earnings per share for the current financial year, the filing said.

Thakral

Thakral Corp. plans to acquire a nearly 19,000 square foot office property at The Riverwalk in Singapore, the company said in a filing to SGX after the market close. The property is the third storey of a 27-storey commercial and residential development, it said.

The proposed deal, which is subject to shareholder approval as an interested-person transaction, will be made via a put-and-call option agreement between Thakral and Thakral Investment Holdings, the filing said.

In the deal, the entire shareholding of Thakral Realty (S) will be purchased for a net S$9 million, but hte total consideration will be S$30 million, due to Thakral Realty (S)’s outstanding loan of S$21 million, the filing said. It will be financed with some of the proceeds from the company’s recent sale of Hong Kong warehouse properties, the filing said.

It added the office unit is fully tenanted and has a valuation of S$30.5 million, according to a recent JLL valuation.

“We believe that real estate in South East Asia – especially Singapore – is in a sweet spot. Given the uptrend in the local property market and Singapore’s improving economic outlook, demand for well-located commercial office space is expected to grow,” Thakral CEO Inderbethal Singh Thakral said in the statement.

Spackman Entertainment

Spackman Entertainment said it would purchase 2.3 million shares, or a 7.52 percent stake, of associated company Spackman Media Group (SMGL) at US$3 each for a total US$6.90 million, or around S$9.14 million, to be paid in newly issued shares.

Spackman Entertainment said it would issue 101.6 million new shares at an issue price of S$0.09, a 26.8 percent premium over its volume weighted average price of S$0.071 on May 18, which was the last market day before the deal was reached, it said. After they are issued, the new shares will represent around 12.79 percent of the company’s issued share capital after the deal is completed, it said.

After the deal is completed, the company’s stake in SMGL will rise to 41.28 percent from 33.76 percent, it said in a filing to SGX before the market open on Tuesday.

SMGL is one of South Korea’s largest entertainment talent agencies, the filing said.