Singapore stocks to watch Monday: SGX, Keppel, Sembcorp, Noble, Ho Bee Land, Oxley

Dhoby Ghaut MRT stop in SingaporeDhoby Ghaut MRT stop in Singapore

These are the Singapore stocks likely in focus on Monday 18 June 2018:

Singapore Exchange

Singapore Exchange has been granted a licence extension to continue listing and trading SGX Nifty contracts beyond the original expiration of the product licences in August, SGX said in a release on Saturday.

An arbitrator in India directed SGX and the National Stock Exchange’s index company, IISL, to facilitate the continued listing of SGX Nifty products for at least two successive contract month maturities after the completion of the arbitration, the release said.

Keppel Corp.

Keppel Corp. said its indirect wholly owned subsidiary Keppel China Township Development entered a deal to sell its 100 percent interest in Keppel Township Development (Shenyang), or KTDS, to Shenyang SUNAC Xinxing Enterprise Management.

The total consideration for the divestment is around 980 million yuan, or around S$205 million, it said in a filing to SGX on Sunday, adding the deal was expected to be completed by the end of the month.

Keppel said it expected to recognize a gain of around S$43 million from the divestment. That compares with Keppel’s reported first quarter net profit of S$337.5 million, which got a fillip from a S$289 million net gain from a property divestment in China.

“The divestment is in line with Keppel Land’s strategy to recycle assets to seek higher returns and rebalance its portfolio to focus on selected high-growth cities in China,” it said.

KTDS, which Keppel holds through Keppel Land China, is currently developing a residential township project in Shenbei New District, Shenyang City in China, it said. KTDS’ unaudited net asset value was around 538 million yuan at the end of May, the filing said.

Sembcorp Industries

Sembcorp Industries said its wholly owned subsidiary Sembcorp Solar Singapore has completed a deal to take over a 40 megawatt grid-tied rooftop solar-power project currently under construction in Singapore. Sembcorp acquired all of the equity interest in the project development company MSOA as part of the deal, it said in a filing to SGX after the market close on Thursday.

Sembcorp said its total investment in the project, including buying the project development company and future investment to complete construction, is estimated at around S$55 million.

Ho Bee Land

Ho Bee Land said its wholly owned subsidiary Grandeur Property Investments acquired Frasia Properties S.a.r.l, or FPS, for 650 million British pounds, or around S$1.16 billion. Luxembourg-registered FPS owns trophy office building Ropemaker Place in London, it said in an SGX filing on Sunday.

The annual rental income from the building is around 30.57 million pounds, or around S$55.0 million, with a net yield of 4.68 percent, it said.

The acquisition brought Ho Bee’s total investment in London to S$2.4 billion, or 41 percent of the group’s total investment portfolio, the statement said.

Oxley Holdings

Oxley Holdings said on Thursday that its subsidiary Oxley MK Holdings Vietnam subscribed for 49 percent of the charter capital of MK Thao Dien Co. for 19.6 billion Vietnamese dong. The total charter capital of MK Thao Dien is 40 billion dong, it said in an SGX filing.

MK Development Management holds the remaining 51 percent of MK Thao Dien, which was incorporated in Vietnam last year, but has been dormant since, it said. MK Thao Dien intends to undertake property development projects in Ho Chi Minh City, it said.

In a separate SGX filing on Thursday, Oxley Holdings said that the charter capital of its Vietnam joint venture Oxley MK Hanoi was increased to 320 billion dong, comprising 32 million shares of 10,000 dong each. That was up from charger capital of 20 billion dong previously, it said.

The additional shares were issued to Oxley MK Hanoi shareholders proportionally to their stakes and immediately after the capital increase, Oxley MK Holdings Vietnam held 20 percent of Oxley MK Hanoi, IP Investment Construction held 20 percent and Tran Quoc Hieu held 60 percent, it said.

Oxley MK Vietnam also then acquired 2.88 million shares, or 9 percent of Oxley MK Hanoi, from Tran for an aggregate consideration of 65.96 billion dong, it said. After that transaction, Oxley MK Vietnam’s stake in Oxley MK Hanoi rose to 29 percent and Tran’s fell to 51 percent, while IP Investment’s stayed at 20 percent, it said.

Noble Group

Noble requested a trading halt before the market open on Monday, pending an announcement.

Last week, Noble Group said that it and its indirect wholly owned subsidiary, Core Forte, entered into a memorandum of agreement for the proposed sale of a Kamsarmax dry bulk carrier vessel to Aeolian Spirit Shipping, with Transmed Shipping to guarantee the buyer’s performance.

The consideration for the proposed disposal will be US$23.79 million, payable in cash upon the deal’s completion, Noble said in an SGX filing on Friday. Aeolian Spirit Shipping will place a 10 percent deposit with an escrow agent, it said, adding the completion of the deal was expected between 1 August and 30 September of this year.

The book value and net tangible asset value of the vessel were approximately US$23.76 million, it said.

Noble said it would use part of the sale proceeds to pay down amounts owed on the vessel’s mortgage, with the net proceed after the repayment and deducting transaction costs expected to around US$8.4 million.

Ascendas Hospitality Trust

Ascendas Hospitality Trust agreed to acquire a portfolio of three hotels in Osaka, Japan, for 10.29 billion yen, or around S$126.1 million, the REIT manager said in a filing to SGX before the market open on Monday. The purchase consideration was a discount of 2.9 percent to the hotels’ latest valuation, it said.

The acquisitions will be fully funded by debt, it said.

“Given the attractive acquisition price and the ability to leverage on the low Japanese-Yen cost of funding, the portfolio acquisition is expected to be accretive,” the statement said.

On a pro forma basis, the distribution per stapled security for the fiscal 2017-18 financial year would have been 4.3 percent higher at 6.11 Singapore cents, it said.

Yanlord Land

Yanlord Land said that its wholly owned subsidiary Nanjing Renyuan Investment would acquire an additional 4.9 percent of Tianjin Hefa Property Development. That would increase its interest in Tianjin Hefa to 24.7 percent from 19.8 percent by way of an increase in registered capital for an amount of 49.4 million yuan, which remains unpaid, it said in a filing to SGX after the market close on Thursday.

The acquisition isn’t expected to have a material impact on earnings per share for the current financial year, it said.

Venture

Venture said it bought back 20,000 of its shares in the market for S$20.30 each on Thursday for a total consideration, including other expenses, of S$407,003. That brought the total number of shares it has bought back to 414,000, or 0.144 percent of the issued shares excluding treasury shares, since the late April mandate for the buyback, it said in a filing to SGX after the market close on Thursday.

Hutchison Port Holdings Trust

PSA International increased its direct interest in Hutchison Port Holdings Trust to 1.62 percent from 1.57 percent, the trust manager said in a filing to SGX after the market close on Thursday. Its deemed interest in HPHT remained at 10.39 percent, for a total interest of 12.01 percent, up from 11.96 percent previously, it said.

Mapletree Industrial Trust and Mapletree Logistics Trust

Mapletree Industrial Trust said that its trustee, DBS Trustee, on Thursday exercised the option to purchase for its proposed acquisition of 7 Tai Seng Drive for a consideration of S$68.0 million. JTC Corp. has given its in-principle approval for the transaction, it said in a filing to SGX after the market close on Thursday. The proposed acquisition is expected to be completed this month, it said.

The option to purchase was granted by HSBC Institutional Trust Services (Singapore) in it capacity as trustee of Mapletree Logistics Trust, MLT’s trust manager said in a separate filing to SGX.

Cromwell European REIT

Philip Levinson, executive director and CEO of Cromwell EREIT Management, has given notice to resign from his positions, effective at the end of August, the REIT manager said in an SGX filing on Monday before the market open.

The REIT manager said it has started searching for a new CEO.

Tiong Seng

Tiong Seng Holdings said its wholly owned subsidiary, Robin Village Development, entered a share sale agreement to acquire all of Malaysia-based Kinsbina Sdn. Bhd., which owns two vacant plots of land in Mukim Rimba Terjun, Daerah Pontian, Negeri Johor.

The total purchase consideration is around 29.9 million ringgit, or around S$10.0 million, it said in a filing to SGX before the market open on Monday.

Accordia Golf Trust

Mitsubishi UFJ Financial Group ceased to be a substantial shareholder of Accordia Golf Trust, with its deemed interest falling to 4.971 percent from 5.1318 percent, the trust manager said in an SGX filing on Thursday. That was due to a decrease in units that Morgan Stanley can exercise rights over, its said. Mitsubishi UFJ owns a more than 20 percent interest in Morgan Stanley, it said.

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