UPDATE: SG stocks Wednesday: Cuscaden Peak, SPH, ST Engineering, MUST, Keppel REIT, AREIT, Boustead Projects, SingPost

ST Engineering display at CommunicAsia conference in Singapore in 2019.ST Engineering display at CommunicAsia conference in Singapore in 2019.

Singapore companies in focus on Wednesday, 1 December 2021:

  • Cuscaden Peak clarifies break fee payment if SPH bid succeeds
  • ST Engineering distributes circular for shareholder vote on TransCore acquisition
  • Manulife US REIT prices private placement at bottom of indicative range, raising US$100M
  • Manulife US REIT enters deals to acquire 3 properties in Arizona and Oregon for around US$202M
  • Keppel REIT to acquire North Sydney office development for around A$328M
  • Frasers Logistics & Commercial Trust invests in UK warehouse development

Others: Keppel Corp., Boustead Projects, Ascendas REIT, Singapore Post (SingPost), ESR-REIT, Sabana Industrial REIT, Darco Water Technologies and Astaka Holdings.

This item was originally published on Tuesday, 30 November 2021 at 23:38 SGT; it has since been updated to add Chip Eng Seng, Luminor Financial, Trans-China Automotive, SMI Vantage and QT Vascular. 

Manulife US REIT

Manulife US REIT has priced its private placement at US$0.649 a unit, at the bottom of its indicative range of US$0.649 to US$0.676, in an offering which met with solid demand as the upsize option was exercised, the REIT said in a filing to SGX late Tuesday.

Read more: Manulife US REIT prices private placement at bottom of indicative range, raising US$100M

Manulife US REIT

Manulife US REIT has entered deals to acquire three U.S. office properties — two near Phoenix, Arizona, and one near Portland, Oregon — for a total of around US$201.6 million, the REIT said in a filing to SGX Tuesday.

Read more: Manulife US REIT enters deals to acquire 3 properties in Arizona and Oregon for around US$202M

Cuscaden Peak, SPH and Keppel

Cuscaden Peak clarified a Straits Times article, with the consortium saying early Wednesday that, as previously stated, if its bid for SPH succeeds, it won’t reduce the consideration to account for the S$34 million break fee which must be paid to competing bidder Keppel.

“If the Cuscaden scheme is successful as a superior competing offer and the break fee is payable by the company, since Cuscaden will own 100 percent of SPH, the break fee will in turn at that stage be indirectly borne by Cuscaden. The Cuscaden scheme consideration payable to the SPH shareholders under the Cuscaden scheme will not be impacted by the break fee,” Cuscaden said in a filing to SGX.

Separately, Keppel filed its responses to questions about its SPH bid from Securities Investors Association (Singapore), reiterating its offer was “compelling in value” and offered the shortest time to pay out.

Read Cuscaden Peak’s filing to SGX.

Keppel REIT

Keppel REIT has entered a deal to acquire all of Blue & William, a Grade-A office building under development in North Sydney, Australia, for a total development consideration of A$327.7 million, or around S$322.2 million, the REIT’s manager said Tuesday.

Read more: Keppel REIT to acquire North Sydney office development for around A$328M

ST Engineering

ST Engineering on Tuesday distributed the circular to shareholders to vote on the proposed acquisition of TransCore, with the extraordinary general meeting (EGM) to be held virtually on 15 December.

Read more: UPDATE: ST Engineering to acquire TransCore from Roper Technologies for US$2.68B

Keppel Corp.

Keppel Offshore and Marine’s wholly owned subsidiary Keppel FELS has entered a framework agreement with Orsted to streamline the process of taking up potential future offshore substation (OSS) projects, Keppel said in a filing to SGX Tuesday.

Read more: Keppel O&M enters framework deal with Orsted on potential offshore substation projects

Boustead Projects

Boustead Projects said Tuesday its 50 percent-owned joint venture BP-Braddell has completed the divestment of the 351 on Braddell property to Boustead Industrial Fund.

Read more: Boustead Industrial Fund to acquire 351 Braddell Road property for S$121M

Frasers Logistics & Commercial Trust

Frasers Logistics & Commercial Trust said late Tuesday it would acquire a property to be developed at Worcester Six, a new business park in the West Midlands, U.K. for a maximum of 28.3 million British pounds, or around S$51.5 million.

Read more: Frasers Logistics & Commercial Trust invests in UK warehouse development

Ascendas REIT

Ascendas REIT said Tuesday it has completed the disposal of the 1 Science Park Drive property in Singapore for S$103.16 million as part of the planned redevelopment of the site with CapitaLand Development into a life science campus.

Read more: Ascendas REIT and CapitaLand Development to invest S$883M to redevelop 1 Science Park Drive

Singapore Post

Singapore Post (SingPost) said Tuesday it has completed the acquisition of the second tranche of shares of Freight Management Holdings and the acquisition of the proposed option shares for A$28.8 million and A$81.5 million, respectively.

SingPost’s wholly owned subsidiary SingPost Australia Investments now holds 51 percent of Freight Management Holdings’ enlarged share capital, the Singapore-listed logistics company said in a filing to SGX.

Read more: SingPost accelerates plan to increase stake in Australia’s Freight Management to 51 percent

ESR-REIT

ESR-REIT has completed the divestment of two properties — 11 Serangoon North Avenue 5 and 3C Toh Guan Road East — for around S$53 million, the REIT said in a filing to SGX Tuesday.

Read more: ESR-REIT completes divestment of two properties for S$53M

Sabana Industrial REIT

Sabana Industrial REIT, previously known as Sabana Shariah Compliant Industrial REIT, has entered an agreement for an unsecured term and revolving credit facilities of up to S$40 million with HSBC, the REIT said in a filing to SGX Tuesday.

The credit agreement includes a S$18 million four-year term loan facility, a S$20 million three-year revolving credit facility and a S$2 million three-year bank guarantee facility, the REIT said.

The facilities will be used to refinance existing indebtedness, for general corporate and working capital requirements, for asset enhancement initiatives and maintenance capital expenditure and for the provision of bid bonds performance guarantees and performance bonds, including to utility companies as security deposit, the filing said.

Chip Eng Seng

Chip Eng Seng said Tuesday said it has launched an offering of S$48.75 million 6.50 percent notes due 2024 after reverse enquiry interest from investors. The notes are expected to be issued on 6 December, Chip Eng Seng said in a filing to SGX.

The net proceeds will be used for general corporate purposes, including refinancing existing borrowings, financing investments and for general working capital, the filing said.

Certain directors of the company and/or entities and/or people related to them have been allocated around 10.3 percent of the bond offering, the filing said.

DBS Bank has been appointed as the sole lead manager and bookrunner, the filing said.

Read Chip Eng Seng’s filing to SGX on the bond offering.

Darco Water Technologies

Darco Water Technologies has reported Tuesday that the Crowe Horwath First Trust LLP investigation of a whistleblower report about its China subsidiary Wuhan Kaidi Water Service Co. (WHKD) found that the fiscal 2019 audited statements were modified and submitted to China Everbright, which had provided WHKD with an ongoing bank facility.

The investigation found that the modified statements were prepared by replacing the income statement, balance sheet and equity statement manually, and no changes were made to the accounting records, the company said in a filing to SGX. However, discrepancies were found in the tax filings, which showed research and development expenses were increased so WKHD could maintain a concessionary tax rate for technology enterprises, the filing said.

Darco Water said that as part of the follow-up actions to address the whistleblower report, it has appointed Zhan Miao as WKHD’s new finance manager.

Read Darco Water’s filing to SGX.

QT Vascular

QT Vascular said Tuesday it has agreed with Dr. Gian Siong Lin Jimmy to extend the long-stop date of the plan for the Singapore-listed company to acquire 60 percent of Healthcare Group in a deal which would involve a corporate restructuring.

The company noted that the requisitioning shareholders have called for an extraordinary general meetings (EGMs) to vote on the removal of incumbent directors and to appoint new directors.

“While the requisitioning shareholders’ plans for the company have not been made clear, they have raised concerns regarding the proposed transactions,” QT Vascular said, adding if new board members are appointed, it could have a “significant impact” on the deal.

“The company would like to remind shareholders that their votes at the forthcoming EGMs on 6 December 2021 and 15 December 2021 are CRITICAL to the implementation of the proposed transactions and are advised to consider their votes at the forthcoming EGMs carefully,” QT Vascular said. Emphasis is the company’s.

Read more: UPDATE: Mission Well calls for QT Vascular to hold EGM to remove CEO and other directors

Luminor Financial

Luminor Financial Holdings said Tuesday it had decided to accept the Fuling District local authority’s offer of 42.94 million yuan as compensation for the repossession of development property land in Fuling District, Chongqing in China.

The book value of the land is 8.41 million yuan as of end-September, with an estimated gain on disposal of 34.53 million yuan, the company said in a filing to SGX.

Trans-China Automotive Holdings

Trans-China Automotive Holdings reported Tuesday its revenue for the January-to-September period rose 15 percent on-year to 3.56 billion yuan, or S$750.25 million, as all of the company’s BMW dealerships posted higher growth in volume and sales on-year as demand for luxury cars remained strong.

“The overall supply of passenger automobiles in China is expected to remain tight in the next few months given global and domestic supply chain disruptions due in part to chip shortages,” the company said in a filing to SGX. “With the tight supply situation, the market is expected to experience less pricing pressure with the group observing an improvement in average selling prices as compared to 9M2020.”

SMI Vantage

SMI Vantage reported Tuesday its auditors, RSM Chio Lim, have issued a disclaimer of opinion on the group’s financial statements for the fiscal year ended 31 March 2021.

“In the past year, the company has experienced unprecedented challenges and difficulties presented by Covid-19 pandemic and the political situation in Myanmar. While the company has strived to provide the necessary information, supporting documentation, forecast and assumptions, due to significant uncertainties surrounding the nature of the assumptions and estimates in particular the date of the re-opening of the Yangon International Airport, this has resulted in the issue of the Disclaimer Opinion as the auditors was unable to obtain sufficient appropriate evidence to independently support, substantiate and verify these assumptions and estimates,” the company said.

The auditors said they were “unable to obtain sufficient appropriate evidence” to determine if the company could continue as a going concern.

Read SMI Vantage’s filing to SGX.

Astaka Holdings and China State Construction Engineering (M)

Astaka Holdings said Tuesday it has reached a settlement deal over China State Construction Engineering (M)’s (CSCE) 50.88 million ringgit claim against the company by agreeing to pay CSCE 44.07 million ringgit.

Under the settlement, Astaka will pay 10 million ringgit in one lump sum and 11.54 million ringgit will be paid either by the transfer of five properties within the The Atstaka @ Bukit Senyum development to CSCE or by equal monthly instalment payments, the company said in a filing to SGX.

Another 13.38 million ringgit will be paid in installments by end-October 2022, and 9.16 million ringgit will be paid in installments after the issuance of a Certificate of Making Good Defects once CSCE completes defect rectification works, the filing said.

Astaka said the settlement was reached to resolve the dispute on amicable terms, with the transfer sum of the properties set at above book value.

Read Astaka’s filing to SGX on the settlement.

 

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