Singapore stocks to watch Wednesday: Keppel, Ezra, MLT, APAC Realty

The skyline in Singapore’s central business district.The skyline in Singapore’s central business district.

These are the Singapore stocks likely in focus on Wednesday 6 June 2018:

Keppel Corp.

Keppel Offshore & Marine, via its fully owned subsidiary Keppel Singmarine, secured a contract valued at S$50 million from FueLNG to build Southeast Asia’s first LNG bunkering vessel, Keppel Corp. said in a filing to SGX after the market close on Tuesday.

FueLNG is a joint venture between Keppel O&M and Shell Eastern Petroleum, it said. The vessel will enable FueLNG to provide ship-to-ship bunkering services, the statement said.

“We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore,” Andrew Tan, CEO of the Maritime and Port Authority of Singapore’s LNG Bunkering Pilot Programme, said in the statement. “As the world’s largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel.”

The contract isn’t expected to have a material impact on Keppel’s earnings per share for the current financial year, the statement said.

Ezra

Ezra Holdings said it entered a deal to dispose of its entire interest in a property at 20 Ubi Crescent, Ubi Techpark, in Singapore to Sapphire Star for a consideration of S$2.93 million, or around US$2.19 million. The disposal is subject to various conditions, including U.S. Bankruptcy Court approval, Ezra said in a filing to SGX after the market close on Tuesday.

Ezra said it currently receives no income from the property, which has been vacant since October, but that it had continued to face administrative expenses. The property had originally been used as the company’s training facility, it said. The net proceeds, which represented a gain of around US$1.14 million over the property’s book value of around US$1.05 million as of end-August 2016, will be used to fund Ezra’s restructuring efforts, it said.

In addition, Ezra said it entered a deal with an individual to dispose of non-listed shares in a private limited company that was classified as “available-for-sale investments” in its 2015 financial statements. The shares of preference shares in IC Cell Ezra Ltd., an insurance company incorporated in Guernsey, it said.

The consideration is at a premium of US$100,000 to the fair market value of the non-listed shares as determined by an independent valuation firm, it said.

The share sale will be subject to various conditions, including the approval of the U.S. Bankruptcy Court, it said. Within five days of the court approval, the purchaser will be required to pay a prepayment of US$1.5 million, which will be credited to the full payment if the deal is completed, it said.

The net proceeds will be used to fund Ezra’s restructuring efforts, but the gain or loss over the book value, which was at US$3.1 million in 2016, can’t be determined until after the valuation report is issued, it said.

Mapletree Logistics Trust

Mapletree Logistics Trust said that the advanced distribution per unit for the April 1 to June 4 period is 1.398 Singapore cents. Unitholders whose securities accounts were credited with the units as of the close of business on Monday will be entitled to the distribution, which will be paid on or around August 31, it said in a filing to SGX after the market close on Tuesday.

The 183.792 million new units that MLT placed at an issue price of S$1.197 each and which began trading on Tuesday will not be entitled to the advanced distribution, it said. The next distribution will be for the June 5 to June 30 period and quarterly distributions will resume afterward, it said.

APAC Realty

APAC Realty, which operates a Singapore real-estate brokerage under the ERA brand, plans to buy a commercial property in Tao Payoh in Singapore from HC Home for S$72.8 million. It plans to use the property to expand the ERA operations, including new office space for agents and for training areas, it said in a filing to SGX after the market close on Tuesday. It will also act as the headquarters for ERA Asia Pacific, it said.

Singapore Press Holdings

Singapore Press Holdings said its subsidiary The Seletar Mall, or TSM, entered a loan agreement with DBS and OCBC for a term loan facility of a total S$300 million, split evenly between the two banks, for a tenure of three years.

The loan is secured in part by way of a mortgage over the property comprising the retail Seletar Mall at the junction of Sengkang West Avenue and Fernvale Road, SPH said in a filing to SGX on Tuesday after the market close.

TSM is a joint venture between SPH’s fully owned subsidiary Moon Holdings, which holds 70 percent, and United Engineers Developments, which holds the remainder, the filing said.

In a separate filing to SGX, SPH said that The Seletar Mall had been valued at S$488 million by Edmund Tie & Co. (SEA).

 

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