Singapore stocks to watch Friday: Sembcorp, Keppel, OUE Hospitality

Escalators at Singapore Orchard MRT stationEscalators at Singapore Orchard MRT station

These are the Singapore stocks in focus on Friday, 1 June 2018:

Sembcorp Industries

Sembcorp Industries said it reached a deal to acquire British flexible distributed energy generator UK Power Reserve, or UKPR, for 216 million British pounds, or around S$385 million. UKPR owns and operate flexible distributed energy generation projects in 32 locations in England and Wales, with 533 megawatts in operation and another 480 megawatts under construction and development, it said.

“The deal marks a major step in line with Sembcorp’s new strategy to position itself for the global energy transition, grow its merchant energy capabilities, and build an integrated energy business in the U.K.,” the company said in a filing to SGX on Thursday. It said UKPR’s assets help to counter the intermittency of renewable power sources and help to support the shirt toward green energy.

On Friday, Sembcorp released a statement saying the deal had been completed.

Keppel Corp.

Keppel Corp. corrected its SGX filing earlier this week about signed an option for a proposed sale of 51 percent of HK Aether, its entire holding in the company.

In a fresh filing to SGX after the market close on Thursday, Keppel said the unaudited net asset value of HK Aether was around S$447 million as of the end of April. The earlier filing had said the value was around 447 million yuan.

The consideration for the proposed sale of 16.7 million shares of HK Aether would be around US$297.9 million, or around S$396.3 million, Keppel said in the earlier filing.

OUE Hospitality REIT and OUE Hospitality Business Trust

OUE Hospitality REIT Management, the manager of OUE Hospitality REIT, and OUE Hospitality Trust Management, the manager of OUE Hospitality Business Trust, said that Chong Kee Hiong will be stepping down as CEO and executive director of the REIT manager and trustee-manager on July 15 to pursue other professional interests.

Chong had been CEO since OUE Hospitality Trust listed on SGX in July of 2013, the REIT manager said in the filing to SGX after the market close on Friday.

Chen Yi-Chung Isaac will become acting CEO of the REIT manager and trustee-manager, effective on July 16, subject to regulatory approval, it said. Chen joined OUE Hospitality REIT as vice president of investments and was part of the team listing the trust in 2013 and he is currently the deputy CEO of the trust, it said.

Jason Holdings

SGX reprimanded Jason Holdings and its former CEO Jason Sim Chon Ang for breaching Catalist listing rules.

The company allegedly materially overstated its revenue for the first half ended June 30, 2015, SGX said in a statement issued on Thursday, citing reviews conducted by Ernst & Young Advisory, the company’s internal and external auditors, as well as representations made by Jason Holdings and Sim.

Sim allegedly gave instructions and authorized including undelivered materials in progress claim billings to customers, resulting in the revenue overstatement, SGX said. That resulted in an overstatement of revenue for the period by S$4.3 million, or 20 percent of total revenue, SGX said.

When the company’s financial controller noted unusually high gross profit margins and said the results could be inaccurate, Sim told the board it was due to subsidiary Jason Parquet Specialist’s cost-cutting measures and bulk discounts from suppliers, the statement said; the board accepted the explanation and approved the results for release, it said.

Additionally, Sim and JPS allegedly submitted falsified documents to get short-term financing from banks, SGX said.

SGX said it viewed Sim as failing to carry out his fiduciary duties and as not acting in the interests of shareholders; it advised companies to consult SGX before appointing Sim as a director or member of management. The exchange said it had referred the case to the relevant authorities.

Jason Holdings said earlier this week that Sim had ceased to be non-executive director and CEO of the company. The company’s shares haven’t traded since it requested a voluntary suspension in January of 2016.

Shenton Wire was unable to contact Sim.