UPDATE: Singapore stocks Tuesday: SPH REIT, SembMarine, Temasek, Yangzijiang, Oxley, Challenger, SGX, Tung Lok, Kitchen Culture

Stock ticker at SGX building on Shenton Way; taken October 2018.Stock ticker at SGX building.

Singapore companies in focus Tuesday, 2 November 2021:

  • Cuscaden Peak sets offer price for SPH REIT if bid for SPH is successful
  • Offer by Temasek’s Startree for SembMarine becomes unconditional
  • Yangzijiang posts 3Q21 gross profit fell 21 percent despite revenue rise
  • Oxley JV enters deal to sell 207 affordable housing units at Riverscape development for around GBP51M

Others: SGX and Shanghai Stock Exchange, Elite Commercial REIT, Alset International and American Medical REIT, Challenger Technologies, Dymon Asia Private Equity, GS Holdings, Tung Lok Restaurants, PropNex, Kitchen Culture, Lasseters International, ISOTeam and MindChamps.

This item was originally published on Tuesday, 2 November 2021 at 3:46 a.m. SGT; it has since been updated to add Great Eastern and G.H.Y Culture & Media.

SPH, SPH REIT and Cuscaden Peak

Cuscaden Peak said Monday that if its bid to acquire SPH is successful, it will trigger a chain offer for SPH REIT at a minimum of S$0.964 a unit, based on the simple average of daily volume weight average prices for the 20 trading days prior to the offer for SPH.

Separately, SPH said it would not proceed with the consent solicitation exercise for its outstanding S$500 million 3.2 percent notes due 2030 while it is considering Cuscaden Peak’s offer. The investor call set for 3 November will also be cancelled, SPH REIT said in a filing to SGX.

Read more: Cuscaden Peak sets offer price for SPH REIT if bid for SPH is successful

Sembcorp Marine and Temasek Holdings

The offer by Temasek Holdings‘ subsidiary Startree Investments to acquire all of the shares of Sembcorp Marine it doesn’t already own has become unconditional after receiving valid acceptances of the offer representing around 3.98 percent of the rigbuilder’s shares.

Read more: Offer by Temasek’s Startree for SembMarine becomes unconditional

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding reported Monday its third quarter gross profit fell 20.8 percent on-year to 1 billion yuan as the gross margin dropped by 13 percentage points to 22.4 percent as the shipbuilder was faced with rising raw materials costs.

Read more: Yangzijiang posts 3Q21 gross profit fell 21 percent despite revenue rise

SGX and 7Ridge

Singapore Exchange (SGX) said Monday it would invest around US$200 million as a limited partner in a private equity fund managed by 7Ridge. The fund will be acquiring Trading Technologies International, a global provider of high-performance professional trading software, infrastructure and data services for listed futures and options, SGX said in a filing to the exchange.

“Together with other independent software vendors, Trading Technologies has been a long-term partner of SGX, serving our global derivatives customers with its front-end workflow and connectivity solutions. We look forward to continued collaboration with TT as it builds upon its strong position in the derivatives market, to deliver even more innovative and efficient solutions for the benefit of our ecosystem,” Loh Boon Chye, CEO of SGX, said in the statement.

Read SGX’s statement on the deal.

SGX and Shanghai Stock Exchange

Singapore Exchange (SGX) has entered a deal with the Shanghai Stock Exchange’s wholly owned subsidiary China Investment Information Services (CIIS) to distribute securities market data in real-time in mainland China, the exchange operator said in a filing to SGX Monday.

Under the deal, CIIS will distribute, market and sell SGX’s data to China-based market-data vendors, brokers and media channels, while SGX will provide investor education, the filing said.

Read SGX’s announcement of the deal.

Great Eastern

Great Eastern Holdings reported Tuesday its third quarter net profit fell 26 percent to S$213.3 million on mark-to-market losses due to unfavorable market conditions. Total weighted new sales increased 29 percent on-year in the July-to-September period to S$555.2 million, the insurer said in a filing to SGX.

Read Great Eastern’s filing to SGX.

Oxley Holdings

Oxley Holdings‘ 50 percent-owned joint venture, Ballymore Deanston, entered a deal to sell 207 affordable housing units in the proposed Deanston Wharf development, called Riverscape, to Legal & General Affordable Homes (Development 2) for 50.5 million British pounds.

Read more: Oxley JV enters deal to sell 207 affordable housing units at Riverscape development for around GBP51M

Challenger Technologies

Challenger Technologies said Monday it has completed its subscription deal, issuing 56.55 million subscription shares at S$0.58 each. The new shares are expected to be listed on SGX on Tuesday.

Read more: Dymon Asia Private Equity fund to acquire around 14 percent stake in Challenger Technologies

Elite Commercial REIT

Elite Commercial REIT reported Monday its revenue was 9.41 million British pounds for the third quarter, up 61.7 percent on-year, mainly on its first acquisition, and its distribution per unit (DPU) came in at 1.48 pence, up 20.3 percent on-year.

The portfolio had a 100 percent occupancy rate as of end-September, the REIT said in a filing to SGX.

Read Elite Commercial REIT’s filing to SGX.

PropNex

PropNex said Monday it has terminated the master franchise agreement and disposed of its entire equity interest in PropNex Realty Vietnam to Aidan Wee Wen Wei for S$1.00. At the same time, PropNex entered a unit franchise agreement with Wee Realty, wholly owned by Aiden Wee, to operate a single PropNex unit franchise agency office using its trademarks, the company said in a filing to SGX. Aiden Wee currently holds 25 percent of PropNex Vietnam, the filing said.

“Having considered the franchisee’s request for an early termination of the master franchise agreement and in light of the uncertainty in the global economy and in the property market caused by the Covid-19 pandemic, the company undertook a strategic review of its franchise arrangements and investment in Vietnam and decided that it is in the best interests of the company to proceed with the [deal],” PropNex said. “The entry into the unit franchise agreement allows the group to maintain presence while waiting for the economy in that country to
recover.”

Read PropNex’s filing to SGX.

MindChamps

MindChamps said Monday it has tied up with the Tahir family of the Mayapada Group, under Leaders in Learning Pte. Ltd. to set up a joint venture company to bring MindChamps’ preschools to Indonesia. The first MindChamps PreSchool center in the country is set to open in Bali in the first quarter of 2022, the education company said in a filing to SGX.

Read MindChamps’ filing to SGX.

Tung Lok Restaurants

Tung Lok Restaurants warned Monday it expects to report a net loss for the first half of fiscal 2022 as the Covid-19 pandemic continued to disrupt operations of the food and beverage business.

“During HY2022, the continual rounds of restrictions with limits in group dining size and reduced operating capacity amid tightening of safe management measures to control the local transmission of Covid-19 virus have suppressed the group’s revenue,” the company said in a filing to SGX.

Tung Lok Restaurants

Tung Lok Restaurants said Monday its wholly owned subsidiary Tung Lok Millennium entered a deal to acquire the 40 percent of Tung Lok Xihe Restaurant (TLXR) it didn’t already own from Beijing Xihe Food & Beverage (BJXH) for S$1. TLXR currently operates two restaurant outlets in Singapore, the company said in a filing to SGX.

“The prolonging disruptions caused by the Covid-19 pandemic present unprecedented challenges for BJXH. To manage its business risk exposure, BJXH intends to withdraw their investment in Singapore and focus on their domestic market in China,” Tung Lok Restaurants said.

In addition, Tung Lok Restaurants is in talks with BJXH to dispose of its 40 percent stake in Beijing Xihe Tung Lok Restaurant (XHTL) to BJXH.

“XHTL has faced prolong disruptions and challenges caused by the Covid-19 pandemic. The disposal will enable the group to exit from its loss-making associate company and focus on its core operations in Singapore,” the company said.

Read Tung Lok Restaurants’ filing to SGX.

Alset International and American Medical REIT

Alset International said Monday it entered a subscription agreement for US$8.35 million of convertible promissory notes from U.S.-based American Medical REIT (AMRE).

Read more: Alset International to subscribe for convertible notes from American Medical REIT

GS Holdings

GS Holdings, via its indirect wholly owned subsidiary Hao Kou Wei (HKW), has entered a 50:50 joint venture agreement with Singapore food manufacturer Focaccia Foods to develop, franchise and manage food and beverage brands, the company said in a filing to SGX Monday.

Read more: GS Holdings enters JV with Focaccia Foods to develop new F&B brands

Kitchen Culture

Kitchen Culture clarified Monday that it hasn’t been able to find a lease agreement for the alleged rental arrears from 2016 to 2018 owed by its wholly owned subsidiary KHL Marketing (KHLM) to Kim Hup Lee & Co. for floors 1-3 of the property at 25 New Industrial Road in Singapore.

Read more: Kitchen Culture clarifies no lease agreement found in dispute over alleged rental arrears

G.H.Y Culture & Media

G.H.Y Culture & Media said Tuesday its indirect associated company Beijing Changxin Film & Media was awarded a permit to produce the online drama “Flagbearer of Justice” in China. The series is expected to have 24 episodes and filming and production has begun, the company said in a filing to SGX.

Filming will mainly be in China, while the post-production visual effects work will be spearheaded by the Singapore production team, the filing said.

Read G.H.Y Culture & Media’s filing to SGX.

Lasseters International

Lasseters International said Monday said two of its subsidiaries have entered a deal to sell their combined 29 percent stake in joint venture entity Super Ace Resources to Malaysia-listed Paramount Corp. for 4.85 million ringgit. Super Ace Resources, which mainly is involved in property investment and hospitality-related services, owns a 229-key four-star Mercure hotel, the company said in a filing to SGX.

“The board is of the view that the disposal is in the best interests of the group as it provides a good opportunity to the group to monetise a long term asset and redeploy its resources in view of the Covid-19 pandemic and seek out opportunities that will enhance shareholders’ value,” Lasseters said in the filing.

Read Lasseters International’s SGX filing on the deal.

ISOTeam

ISOTeam has introduced a chemical-free plant-based pesticide called CnO Remover, which is suitable for closed bin-chute systems and targets cockroach infestations, while also reducing odors, the company said in a filing to SGX Monday.

Read ISOTeam’s statement on the new product.

 

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