Singapore stocks to watch Tuesday: Keppel, Sembcorp, ComfortDelGro, Kimly, Spackman

ComfortDelGro taxi in SingaporeComfortDelGro taxi in Singapore

These are the Singapore stocks to watch on Tuesday 3 July 2018:

Keppel Corp.

Keppel Corp. said that its wholly owned Oil Asia Pte. has entered a deal to sell its 100 percent owned unit Orbista to Fortune Paradise Holdings for US$30 million, or around S$40.2 million.

Subsidiary Keppel Land Ltd. (KLL) owns all of Oil Asia, which in turn held Orbista, it said. Orbista holds a 15 percent interest in Quoc Loc Phat Joint Stock Company (QLP), which is the developer of a property in Ho Chi Minh City, Vietnam, it said in a filing to SGX after the market close on Monday.

After the divestment, Orbista will cease to be a subsidiary of KLL and KLL will cease to have any interest in QLP, it said. The deal is expected to be completed in the third quarter of 2018, it said.

Sembcorp Industries

Sembcorp Industries said its wholly owned subsidiary Sembcorp Energy Australia signed a deal to invest A$5 million, or around S$5 million, for an around 77 percent stake in Vellocet Clean Energy (VCE).

“The deal establishes a beachhead for Sembcorp to grow in the Australian power market, particularly in the direct supply of renewable energy to companies,” Sembcorp said in a filing to SGX after the market close on Monday.

VCE offers clean energy services, including behind-the-meter power and microgrids, which help consumers save on high network and retailer costs, and mid-size front-of-meter power supply and generation, the filing said. VCE is also targeting corporate power purchase agreements (PPAs), it said.

“In Australia, the retirement of older coal-fired facilities is creating a significant opportunity for the growth of cleaner energy solutions,” Neil McGregor, group president and CEO of Sembcorp, said in the filing. “At the same time, high retail power tariffs and network and transmission costs have resulted in a favourable outlook for corporate PPAs and distributed energy.”

ComfortDelGro

ComfortDelGro said its wholly owned subsidiary, ComfortDelGro Corp. Australia, acquired the 49 percent of Western Sydney Repair Centre (WSRC) it didn’t already own for A$935,000, or around S$943,000.

After the acquisition, WSRC has become a wholly owned subsidiary of ComfortDelGro, it said in a filing to SGX after the market close on Monday.  Australia-based WSRC provides accident and other repair and maintenance services for buses, passenger cars and other heavy vehicles, it said.

Wing Tai Holdings

Wing Tai Holdings bought back 451,800 shares in the market on Monday at S$1.98 each for a total consideration of S$896,861, including other costs.

Since the 23 October 2017 start of the buyback mandate, Wing Tai has bought back 2,730,300 shares, or 0.35 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Monday.

SATS

SATS said it bought back 257,000 shares in the market on Monday at S$4.91-S$4.98 each for a total consideration, including other costs, of S$1.269 million.

Since the 21 July 2017 start of the buyback mandate, SATS has bought back 6,526,500 shares, or 0.5831 percent of the issued shares excluding treasury shares, SATS said in a filing to SGX after the market close on Monday.

Indofood Agri

Indofood Agri said that its 50:50 joint venture, named Companhia Mineira de Acucar e Alcool Participacoes (CMAA), entered a deal to buy Vale do Pontal Acucar e Alcool Ltda (UVP) from JFLIM Participacoes for a consideration of around 75.9 million reals, or around US$19.7 million, in shares.

CMAA is a joint venture between Indofood Agri and Apia SP Participacoes S.A., while JFLIM is a 50:50 joint venture between JF Family and Rio Grande Investment, a member of the Salim group, it said in a filing to SGX before the market open on Tuesday.

After the shares are issued, JFLIM will own 30 percent of CMAA, while Indofood Agri and Apia will own 35 percent each, it said.

UVP mainly cultivates and processes sugar cane to make and market ethanol and sugar, and it mainly operates one factory in Mas Gerais, it said.

“The acquisition will enable CMAA to expand its footprint in the sugar and ethanol industry in Brazil with a total annual cane crushing capacity increasing from 5.8 million MT (CMAA plus Canapolis mill) to 8.3 million MT after the acquisition,” it said.

Kimly

Kimly said that it acquired all of Asian Story Corp. (ASC) from Wang Chia Ye for a cash consideration of S$16 million, plus the possibility of earn out payments in cash or shares depending on the profit before tax for the year ending 31 December.

The acquisition will be funded by Kimly’s internal resources, including the net proceeds from its IPO, it said.

ASC markets and sells nine different drinks under its “Asian Story” brand, including Winter Melon Tea and Bandung, and also sells bottled water under the “Simply Water” brand, it said in a filing to SGX after the market close on Monday.

ASC also distributes other beverages in Singapore for provision shops, mini marts, coffee shops, hawker centers, schools and institutions, it said.

“The board believes that ASC’s business is complementary and will have synergistic effects with the group’s business, as the group will be able to sell the beverage manufactured and distributed by ASC in all the drinks stalls operated by the group,” it said, adding ASC will also allow the company to expand overseas.

Wang Chia Ye has entered into a three-year service contract with Kimly to act as the commercial director of ASC, it said.

ASC’s audited profit before income tax, minority interests and extraordinary items for the financial year ended 31 December 2017 was S$1.145 million, it said.

Chip Eng Seng

Chip Eng Seng said it has proposed acquiring a property at 51 Pirie Street in Adelaide, Australia, for A$14.5 million, with A$1.45 million, or 10 percent of the purchase price, paid to the seller as a deposit. The deal is expected to be completed on 31 July or earlier, it said in a filing to SGX after the market close on Monday.

The company noted that this was an “interested person transaction,” based on SGX’s listing manual, as Raymond Chia Lee Meng, the director and group CEO of the company, owns a 40 percent stake in the seller of the property, Pirie Investments (Aust).

The property currently has a vacant office building, which the company intends to demolish and then redevelop into a hotel development, it said.

“The proposed acquisition represents an attractive opportunity to acquire a quality site which is centrally located within the Capital City Zone in the central business district of Adelaide,” it said.

Asian Healthcare Specialists

Asian Healthcare Specialists said that its wholly owned subsidiary, The Orthopaedic Centre (International), or TOCI, entered a deal with All-Star American Medical Specialists (Myanmar), or ASAMS, to provide consultancy services for both outpatients and inpatients, including surgical services, for patients at Grand Hantha International Hospital in Yangon, Myanmar.

“Yangon’s healthcare sector is believed to be growing, and we are happy to have the opportunity to be part of the efforts in providing access of high-quality medical care to the patients in Yangon,” Chin Pak Lin, executive chairman and CEO of Asian Healthcare Services, said in a filing to SGX on Monday.

Spackman Entertainment Group

Spackman Entertainment Group said it bought back 500,000 shares in the market on Monday at S$0.048 each, for a total consideration, including other costs, of S$24,074.

Since the 26 April 2018 start of the buyback mandate, Spackman has bought back 1.25 million shares, or 0.18 percent of the issued shares excluding treasury shares, it said in an SGX filing after the market close on Monday.

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