Singapore stocks to watch Wednesday: Mapletree Logistics, SembMarine, BreadTalk, CapitaLand, Falcon Energy

Singapore 50 dollar bill

These are the Singapore stocks likely in focus on Wednesday, 5 September 2018:

Mapletree Logistics Trust

Mapletree Logistics Trust’s manager said on Tuesday it had entered an option agreement with Setsco Services for the proposed divestment of 531 Bukit Batok Street 23 in Singapore for S$22.4 million.

The property was acquired in 2005 for S$20.32 million and valued at S$22.4 million at end-March, it said.

Read more: Mapletree Logistics Trusts enters deal to sell warehouse property for S$22.4 million

Sembcorp Marine

Sembcorp Marine said on Wednesday that its wholly owned subsidiary Sembcorp Marine Integrated Yard, or SMIY, has completed the acquisition of the intellectual property rights of Sevan Marine ASA.

The deal was announced earlier this year at a consideration of US$39 million, it said in a filing to SGX before the market open on Wednesday.

The deal included the acquisition of interests and titles to all of Sevan Marine’s intellectual property, a 95 percent interest in HiLoad LNG, a subsidiary of Sevan Marine which holds some intellectual property rights, the takeover of all operating and associated costs, including unexpired leases, in maintaining Sevan Marine’s three office locations, and the transfer of 26 Sevan Marine employees, subject to their acceptance.

SMIY also acquired the remaining 5 percent of HiLoad LNG from a minority shareholder for 625,000 Norwegian krone, or around S$100,000, it said, adding HiLoad LNG will be a wholly owned subsidiary of SMIY after the acquisition.

BreadTalk

BreadTalk said on Wednesday that its first TaiGai flagship tea beverage store will open on Wednesday at NEX Serangoon shopping mall in Singapore, with another nine TaiGai stores planned for Singapore and Thailand next year.

BreadTalk, via its wholly owned subsidiary Together Inc., entered a joint venture called BTG-Pindao in May with Shenzhen Pindao Food & Beverage Management to operate and manage the tea beverage brands TaiGai and Nayuki in Singapore and Thailand, it noted in a filing to SGX before the market open on Wednesday.

“In recent years, there is a rising demand for novelty tea beverages with different brands mushrooming around our city state. I believe that through our strong operational track record and brand management experience, we are optimistic of delivering the iconic TaiGai’s Milky Kiss and Fruity Milky Kiss drinks to capture the hearts and taste buds of consumers,” Henry Chu, BreadTalk CEO, said in the statement.

That deal included the right of first refusal to operate in Malaysia, Indonesia and the Philippines, it said.

CapitaLand Commercial Trust and CapitaLand Mall Trust

RCS Trust, an unlisted special purpose sub-trust which is 60 percent owned by CapitaLand Commercial Trust and 40 percent owned by CapitaLand Mall Trust, has issued S$150 million fixed rate notes to institutional and/or sophisticated investors, the trusts’ managers said in a filing to SGX after the market close on Tuesday.

The proceeds are earmarked to refinance RCS Trust’s existing borrowings, to finance or refinance any asset enhancement works or capital expenditure, and for general corporate and working capital purposes, it said.

The notes, which were issued under its US$2 billion euro-medium term note program, will mature on or around 4 September 2024 and bear an interest rate of 3.05 percent per annum, it said. The notes were assigned an A-minus rating by S&P Global Rating Services, it said.

RCS Trust owns Raffles City Singapore, which comprises Raffles City Tower, Raffles City Shopping Centre, two hotels and a convention center, it said.

CapitaLand

CapitaLand said on Tuesday that its subsidiaries and associates completed the divestment of their equity interests in companies holding 10 retail malls in China.

That was part of its plan, announced 5 January, that it proposed divesting stakes in companies holding 20 retail malls in China, it said in a filing to SGX after the market close on Tuesday. The divestment of the equity interests in the companies holding the remaining 10 malls is expected to take place by the end of the year, it said.

Stamford Land

Stamford Land said on Tuesday that it bought back 62,400 shares in the market at S$0.485 each for a total consideration including other costs of S$30,309.

Since the July 2018 beginning of the buyback mandate, Stamford Land has bought back 4,163,000 shares, or 0.482 percent of the issued shares excluding treasury shares at the time the mandate started, it said in a filing to SGX after the market close on Tuesday.

Interra Resources

Interra Resources said on Tuesday that its 60 percent-owned joint venture, Goldpetrol Joint Operating Company, has completed development well YNG 3273 in the Yenangyaung oil field in Myanmar as an oil producer.

YNG 3273 is the first well to be drilled in Yenangyaung this year and after production testing, has been completed for 42 barrels of oil per day through casing perforations covering 82 feet over twelve reservoirs, the company said in a filing to SGX after the market close on Tuesday.

Interra has a 60 percent interest in the Improved Petroleum Recovery Contract of the Yenangyaung field, and Goldpetrol is the field’s operator, it said.

MoneyMax Financial Services

MoneyMax Financial Services said on Tuesday that it increased the issued and paid-up capital in its wholly owned subsidiary MoneyMax Express to S$7 million from S$4 million.

The investment was funded by internal resources and borrowing and wasn’t expected to have a material impact on the net tangible assets and earnings per share of the company for the current financial year, it said.

Falcon Energy

Falcon Energy said on Tuesday that its subsidiary, Longzhu Oilfield Services, entered four options to purchase on 21 July with Kupac Investments and/or nominees Elite Trading & Investment for the sale of Singapore office units for S$13.21 million.

After the deal is completed, Falcon Energy will be leasing back the properties from the buyer, entering a 24-month lease starting from 9 November with an aggregate monthly rent of S$46,031 and an option to renew for another 12 months, it said in a filing to SGX after the market close on Tuesday.

Shareholder approval will be required for the deal, it said.

Falcon Energy said that it considered the disposal to be a strategic decision, allowing Longzhu Oilfield Services to repay its outstanding amounts under credit facilities granted by UOB, reducing Falcon Energy’s financial liabilities amid a “severe and protracted downturn in the global oil and gas industry and the depressed offshore marine and subsea industry.”

The office units are located at #33-01/01A/14/15/16 at 10 Anson Road, International Plaza, covering an aggregate gross floor area of around 658 square meters, it said.

Oxley Holdings

Oxley Holdings said on Tuesday that the revised development charge rates announced on 31 August by the Urban Redevelopment Authority, which took effect on 1 September, will have “minimal impact” on the company’s proposed developments because provisional permission was granted before the change took place.

The new development charge rates are for the period of 1 September through 28 February 2019, with the rates for non-landed residential and industrial uses increasing by up to 33 percent and 11 percent respectively, and apply to cases granted provisional permission or second and subsequent extensions to that permission, it noted.

Spackman Entertainment Group

Spackman Entertainment Group said on Tuesday that it completed the issuance of 94,634,034 new ordinary shares in the company as part of a share sale and purchase agreement with a shareholder of Spackman Media Group, or SMGL.

The total number of shares in Spackman Entertainment has increased to 887,165,608, excluding treasury shares, from 792,531,574 shares, it said in a filing to SGX after the market close on Tuesday.

Due to the share sale and purchase agreement, Spackman Entertainment’s direct interest in SMGL increased to 43.88 percent from 41.28 percent, it said.

“The group remains optimistic on the future growth of SMGL and believes that SMGL will help unlock higher value for the company’s shareholders through its talent management business,” it said.

Spackman Entertainment Group

Spackman Entertainment Group said on Tuesday that substantial shareholder Spackman Equities’ direct holding in the company fell to 16.79 percent from 18.8 percent after the issuance of 94,634,034 new ordinary shares on the completion of a share sale and purchase agreement between the company and some shareholders of Spackman Media Group.

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