Singapore stocks to watch Monday: CCT, Sembcorp, ST Engineering, DBS, UOL, PropNex

Singapore CBDSingapore CBD

These are the Singapore stocks to watch on Monday 2 July 2018:

CapitaLand Commercial Trust

CapitaLand Commercial Trust’s manager said it entered a deal to sell Twenty Anson, a 20-storey office building in Singapore’s central business district, to an unrelated third party for S$516.0 million.

The deal is expected to be completed in the third quarter, it said in a filing to SGX on Friday.

The sale price was reached through a bidding process and was 19.2 percent above the end-2017 valuation of S$433.0 million and 20 percent higher than the trust’s purchase price of S$430 million in 2012, it said.

“This transaction will unlock value and enhance the trust’s financial flexibility,” Kevin Chee, CEO of the manager, said in the statement, adding that if the proceeds were used to repay existing debt, the trust’s pro forma aggregate leverage would fall to 34.5 percent from 37.9 percent at the end of the first quarter.

Sembcorp Industries

Sembcorp Industries said its wholly owned subsidiary Sembcorp Utilities acquired the 51 percent of Changi Mega Solar (CMS) it didn’t already own from its partner Sinenergy Holdings at the original issue price. It also took over a shareholder’s loan of S$2.68 million previously extended by Sinenergy Holdings to CMS at book value, it said.

The total consideration of S$2.68 million was funded internally and settled in cash, it said in a filing to SGX after the market close on Friday.

CMS is the project company for a 3.6 megawatt grid-tied rooftop solar power project in Changi, Singapore, it said.

ST Engineering

ST Engineering said on Friday it divested a 25 percent equity interest in its indirect associate Airbus Helicopters South East Asia (AHSA) to the joint venture partner, Airbus Helicopters SAS for 9.125 million euros, or around S$14 million, in cash.

AHSA was set up by ST Engineering and Airbus Helicopters in 1977 for helicopter sales, repair, overhaul, logistics and product support services, ST Engineering noted in the filing to SGX after the market close on Friday.

“The divestment of AHSA is a result of ST Engineering’s ongoing business review to streamline capabilities and optimise resources within its aerospace sector,” it said, adding the deal wasn’t expected to have a material impact on earnings per share in the current financial year.

UOL Group

UOL Group said that its Group CEO Gwee Lian Kheng, age 77, will be retiring from the role on 31 January 2019 after 45 years of services. He will remain a director on the board, it said in a filing to SGX after the market close on Friday.

The company’s board is currently identifying and reviewing both internal and external candidates for Gwee’s successor, it said.

DBS

DBS Group said Tan Teck Long will become the bank’s chief risk officer, effective on 1 July, reporting to CEO Piyush Gupta and as a member of the group executive committee.

Tan’s most recent role was head of the institutional banking group’s large and mid-cap businesses as well as servicing as its chief operating officer, it said.

Tan will take over from Elbert Pattjin, who is retiring from the bank after holding the role since 2008, DBS said in a filing to SGX after the market close on Friday.

PropNex

PropNex said that its public offer of 2.125 million shares was around 24.6 times subscribed, while the 40.375 million placement shares were fully subscribed. It over-alloted an additional 8.5 million shares to the placement, it said. The offering price was S$0.65 a share, it said.

PropNex said in an SGX filing after the market close on Friday that 370 million ordinary shares  in the company will be admitted to the official list on Monday at market open. Trading in the shares will commence at 9 A.M. SGT on Monday, it said.

China Aviation Oil (Singapore)

China Aviation Oil (Singapore) said it acquired Navires Aviation (NAL) from Castleton Commodities Merchant Trading (CCMT) for a total consideration of around US$8 million.

CCMT is a wholly owned subsidiary of Castleton Commodities International. NAL, registered in England and Wales, is mainly involved in jet fuel supply and trading as well as aviation marketing, it said, adding NAL holds concession rights to supply jet fuel at Schiphol Airport.

“Through the acquisition of NAL, CAO will be able to establish into-wing jet fuel supply system (the “System”) at four European airports namely, Schiphol Airport, Brussels Airport, Frankfurt Airport and Stuttgart Airport,” it said in a filing to SGX after the market close on Friday.

The transaction will be funded through internal resources and wasn’t expected to have a material impact on earnings per share for the current financial year, it said.

Thai Beverage

Thai Beverage said that International Beverage Holdings (China), or IBHC, entered into a deal with Hong Kong-registered Asia Group Corp. (AGC) to create a joint venture, Asiaeuro International Beverage (Hong Kong). IBHC will hold 51 percent of AIB (HK) and AGC will hold the remainder, it said in a filing to SGX after the market close on Friday.

IBHC is a direct wholly owned subsidiary of International Beverage Holdings Ltd., which is a direct wholly owned subsidiary of Thai Beverage, it said. AIB (HK) is an indirect subsidiary of ThaiBev, it said.

“AIB (HK) will engage in sales and distribution of alcoholic beverages, coffee products and other related businesses in Hong Kong and Macau,” it said. “Initially, the primary focus of AIB (HK) would be the importation, sales and distribution of premium international wines and spirits.”

Additionally, IBHC and China-registered Asiaeuro Wines & Spirits (Shenzhen), or AE (SZ), also entered a 51-49 joint venture to form a mainland venture, it said. The major shareholders of AGC are the indirect shareholders of AE (SZ), it said. The business of the China joint venture was expected to be similar to that of AIB (HK), it said, adding it would make an announcement once the mainland joint venture is incorporated.

Vard Holdings

Vard Holdings said that after SGX Regco completed its review of the company’s updated delisting circular with no further comment, it would despatch the document to shareholders on 9 July and convene a second extraordinary general meeting on 24 July.

In a separate filing to SGX before the market open on Monday, Citigroup said on behalf of Italy-based Fincantieri, which is aiming to acquire all of Vard, that the closing date of the exit offer was extended to 7 August from 20 July.

The total valid acceptances of the exit offer has reached 1.024 billion shares, or 86.81 percent, of Vard’s shares, it said.

Sino Grandness

Sino Grandness Food Industry Group said it further expanded its China presence for its own-branded products, which include juices, canned food and snack food.

“In June 2018, the group has started to roll out Garden Fresh juices, Grandness canned fruits and First snack products across Meiyijia convenience stores and Meiyiduo supermarkets in China,” it said in a filing to SGX after the market close on Friday.

Meiyijia has more than 15 million online customers and more than 13,000 stores in 13 provinces and 68 cities in China, it said, adding it expected to add 200 new stores a month.

Meiyiduo supermarkets, managed by Shenzhen Meiyiduo Operation Management Ltd. (MOML), has more than 170 supermarkets and convenience stores, it said.

Del Monte Pacific

Del Monte Pacific Ltd., or DMPL, reported on Friday that net profit for the fiscal fourth quarter ended 30 April rose 321.5 percent to US$12.26 million,, while turnover fell 8.5 percent on-year to US$498.98 million. The sales decline was due to lower sales of canned tomato and Sager Creek products in teh U.S. and lower exports of processed pineapple products and lower pineapple juice concentrate pricing across all regions, it said.

The U.S. subsidiary, Del Monte Foods Inc. (DMFI), divested the underperforming Sager Creek vegetable business in the second quarter and shut its Indiana tomato production facility in the third quarter, it said, adding that resulted in US$28.6 million in pre-tax one-off expenses.

For the full fiscal year, DMPL reported a net loss of US$28.19 million, swinging from a year-earlier net profit of US$24.37 million, while turnover fell 2.5 percent to US$2.197 billion.

“The group is on track with its strategy of innovation. The Del Monte Fruit & Chia cups launched in the second quarter are performing well. These are adult fruit cup snacks which combine fruit and chia seeds,” the company said in an SGX filing on Friday. “DMFI followed this in the third quarter with the introduction of grab-and-go fruit cup snacks which are single-serve cups with ‘sporks,’ for convenient snacking on the go.”

Koh Brothers

Koh Brothers Eco Engineering said it is proposing a renounceable non-underwritten rights cum warrants issue of up to 523.32 million new ordinary shares in the company’s capital at an issue price of S$0.045 for each rights share, with up to 523.32 million free detachable warrants, each with the right to subscribe for one new ordinary share at an exercise price of S$0.050 each.

The offering is on the basis of one rights share for every two ordinary shares in the company’s capital held by entitled shareholders on the books closure date, which will be determined later, it said in a filing to SGX after the market close on Friday.

The company expects to receive net proceeds ranging from S$15.21 million to S$49.72 million, depending on the exercise rate of the warrants and rights subscriptions, it said.

The company plans to use the proceeds to fund its business expansion and for working capital requirements, it said.

BreadTalk

BreadTalk said BTG-Pindao Venture has entered a joint venture agreement with Song Fa to create BTG-Song Fa-Pindao Venture, which will be 90 percent owned by BTG-Pindao and 10 percent owned by Song Fa.

“With Pindao’s proven track record, the group is confident of Pindao’s capabilities in supporting the Song Fa Bak Kut Teh brand’s penetration starting with Shenzhen and Guangzhou,” BreadTalk said in a filing to SGX before the market open on Monday.

“Through this unique tripartite alliance, BreadTalk Group and Song Fa can leverage on Pindao’s resourcefulness in sourcing strategic locations in Shenzhen and Guangzhou as well as their demonstrated capabilities in developing sustainable talent pipelines through effective recruitment strategies,” it said.

BTG-SF-Pindao, via wholly owned subsidiaries tentatively named Song Yu (Shenzhen) and Song Yu (Guangzhou), will take over operating Song Fa brand restaurants in Shenzhen and Guangzhou, which were originally covered under the BTG-Song Fa Venture, it said.

BTG-Pindao Venture is a joint venture between Together Inc., which is a wholly owned subsidiary of BreadTalk, and Shenzhen Pindao Food & Beverage Management (Pindao), it said. BTG-Pindao was created to operate tea beverage brands Nayuki and Tai Gai in major Southeast Asian markets, it said.

Hotung Investment

Hotung Investment said one of its investee companies, Foresee Pharmaceuticals, listed on the Taipei Exchange on Friday. Hotung said it had invested in Foresee, a clinical-stage pharmaceutical company, since February 2016, it said in an SGX filing after the market close on Friday.

“Foresee has developed two global patent protected new drugs, FP-001 and FP-025, currently in clinical development stage,” it said, with one drug in a phase three study for advanced prostate cancer and the other launching a phase two study for treadtment of asthma and chronic obstructive pulmonary disease.

Shopper360

Shopper360 said it appointed Ooi Chee Kee as its new CEO of Jump Retail, a wholly owned subsidiary, with effect from 23 July.

Lee Jun Ling, the current general manager of business development and operations, will take on an expanded role to helm Shopper360’s recently incorporated, wholly owned subsidiary Retail Galaxy, it said in a filing to SGX after the market close on Friday.

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