Wednesday, October 15, 2014
Poll: Market turmoil - Time to buy, or run for cover?
Poll: Market turmoil - Time to buy, or run for cover?: "Signs of slowing growth in Europe and China coupled with concerns about an Ebola outbreak sparked a global equity rout this month, leading some analysts to call the beginning of a market correction.
Weak economic data from Germany, the growth engine of Europe, have raised concerns that the euro zone could slip into a recession. On Tuesday, the German government slashed its 2014 economic growth forecast to 1.2 percent from 1.8 percent on the back of disappointing export, industrial production and factory orders data."
'via Blog this'
Weak economic data from Germany, the growth engine of Europe, have raised concerns that the euro zone could slip into a recession. On Tuesday, the German government slashed its 2014 economic growth forecast to 1.2 percent from 1.8 percent on the back of disappointing export, industrial production and factory orders data."
'via Blog this'
Tuesday, October 14, 2014
POEMS Research : Daily Reports
POEMS Research : Daily Reports:
"HONGKONG
China Eastern Airlines – Continue a mild recovery trend
Rating:
Accumulate
Closing price: 2.65
Target price: 2.81
Total income reported to RMB 44.936 billion yuan in 1H, up 6.28% yoy. Net profit belonging to the parent company is RMB 12 million, shrinking by 98% yoy from 622 million in the same period of last year.
Earnings per share are 0.001 yuan while they were 0.536 in 2013H. The yield of passenger improved 1.2% yoy to 0.61 yuan. The international routes improved significantly, upping 6.34% yoy; regional routes with high profit fell by 10.6%; domestic routes reduced 0.2% yearly.
In August passenger traffic only slightly upped 2.65% yoy, mainly due to the relatively high influence on CEA on domestic airlines flow controls. While the F L/F grew 2.6 ppts to 60%.
We revised the Company’s estimated EPS to 0.14,0.22,0.3 in 2014/2015/2016 respectively. Our 12-m-target price is HK$2.81, equivalent to 15.3/10/7.4xP/E in 2014/2015/2016 respectively. We recommend causly accumulate rating."
'via Blog this'
"HONGKONG
China Eastern Airlines – Continue a mild recovery trend
Rating:
Accumulate
Closing price: 2.65
Target price: 2.81
Total income reported to RMB 44.936 billion yuan in 1H, up 6.28% yoy. Net profit belonging to the parent company is RMB 12 million, shrinking by 98% yoy from 622 million in the same period of last year.
Earnings per share are 0.001 yuan while they were 0.536 in 2013H. The yield of passenger improved 1.2% yoy to 0.61 yuan. The international routes improved significantly, upping 6.34% yoy; regional routes with high profit fell by 10.6%; domestic routes reduced 0.2% yearly.
In August passenger traffic only slightly upped 2.65% yoy, mainly due to the relatively high influence on CEA on domestic airlines flow controls. While the F L/F grew 2.6 ppts to 60%.
We revised the Company’s estimated EPS to 0.14,0.22,0.3 in 2014/2015/2016 respectively. Our 12-m-target price is HK$2.81, equivalent to 15.3/10/7.4xP/E in 2014/2015/2016 respectively. We recommend causly accumulate rating."
'via Blog this'
German government slashes 2014, 2015 growth views - MarketWatch
German government slashes 2014, 2015 growth views - MarketWatch: "BERLIN--Germany slashed its growth forecasts for this year and next, citing a weak global economy amid a series of international crises, in a step that follows a slew of poor data for Europe's biggest economy.
The economics ministry cut its forecast for economic growth this year to 1.2% from an earlier forecast of 1.8%, and to 1.3% for 2015 from 2% previously."
'via Blog this'
The economics ministry cut its forecast for economic growth this year to 1.2% from an earlier forecast of 1.8%, and to 1.3% for 2015 from 2% previously."
'via Blog this'
All the reasons to sell this market are enough to draw a guy in - MarketWatch
All the reasons to sell this market are enough to draw a guy in - MarketWatch: "“The complexity part is that the stock market does show momentum. Changes in the market are not normally distributed. Good times tend to lead to good times. Bad times lead to more bad times. The hard part, of course, is spotting when the trends change.”"
“Government doesn’t always do what’s best for you. It does what’s best for government,” he said. “The Ebola scare will continue, and the market will continue to get spooked. As soon as things get under control, the market will stabilize. Until it does, keep your head down and stay long the VIX!”
'via Blog this'
“Government doesn’t always do what’s best for you. It does what’s best for government,” he said. “The Ebola scare will continue, and the market will continue to get spooked. As soon as things get under control, the market will stabilize. Until it does, keep your head down and stay long the VIX!”
'via Blog this'
Monday, October 13, 2014
Courts Asia: 'Big-Box' megastore in Bekasi to officially open on 18 Oct 14. The first Courts megastore in Indonesia has begun retailing since its soft opening on 4 Oct 14. The megastore showcases innovative retail concepts with the widest range of home and lifestyle products. (Source: Courts Asia)
Ezra: Subsea services division finalises three contracts worth over US$300m with Noble Energy. The scope of work includes engineering, procurement, construction and installation of subsea tie-backs for the Big Bend, Dantzler and Gunflint field developments in the US Gulf of Mexico, which includes over 80 miles (130 km) of Pipe-in-Pipe (PiP) flowlines and over 56 miles (100 km) of umbilicals in water depths up to 7,200ft (2,200 metres). Offshore work will commence in 2015 using five EMAS AMC offshore construction vessels. (Source: Ezra)
GLP: Pre-leases 49,000sqm to leading express delivery providers in eastern China. GLP has signed pre-lease agreements totaling 49,000sqm (or 527,000sf) with Best Logistics and another leading express delivery provider in eastern China. Both customers are existing multi-location customers of GLP and are upgrading from their existing warehouses to GLP's modern facilities. (Source: Global Logistic Properties)
Nam Cheong: Sees record OSV deliveries in 2014-15. Malaysia's biggest builder of offshore support vessels said it expects record deliveries this year and next. This comes as the company's focus on shallow-water oil search products helps it withstand a drop in crude oil prices. (Source: The Business Times)
Mermaid Maritime: Increases stake in Subtech Saudi Arabia to 95%. The company has increased its stake in Subtech Saudi Arabia from 70% by acquiring previous co-shareholder General Technology & Systems Co. through its wholly-owned subsidiary. The remaining 5% in Subtech Saudi Arabia belongs to local interests represented by Integrated Trading Services Establishment. The consideration for the additional 25% stake is US$250,000. (Source: The Business Times)
Sino Grandness: 80.5% of Garden Fresh HK Rmb100m 0% convertible bonds due 2014 extended to 2015. The company has announced that bondholders representing 80.5% of the principal amount of the convertible bonds (CB) have indicated that they intend to exercise their right to extend the maturity date of the CB from 19 Oct 14 to 30 Jun 15. In addition, the company is repurchasing the remaining 19.5% of the principal amount of the CB for about Rmb37.9m. (Source: Sino Grandness)
Swissco: Secures chartering contracts with options worth US$17.3m. The offshore support vessels, comprising two new workboats and one anchor handling tug supply vessel, will be deployed in the Middle East under the contracts. The said contracts are expected to have a positive impact on Swissco’s financial performance from the fourth quarter of the current financial year. (Source: Swissco)
Retail Market Monitor Friday, 10 October 2014
www.utrade.com.sg 4
SINGAPORE
CORPORATE NEWS Tigerair: To right-size operations with sub-lease of 12 aircraft to IndiGo. This sub-lease arrangement enables the group to reduce excess capacity significantly and hence lower related leasing cost. These 12 aircraft will be progressively delivered to IndiGo over six months commencing Oct 14. (Source: Tiger Air) Comments: Tigerair also announced yesterday evening that it is contemplating a rights issue after stating that it will very likely have to make a provision of S$93m on surplus aircraft. We are not surprised by the need for further equity. As at the previous quarter, we stated that Tigerair was operating on negative equity if one were to exclude perpectual securities. We reckon Tigerair would need to raise at least S$150m and one possibility is a 1:2 rights allotment.
Yongnam: Secures three subcontracts worth S$76.6m for Thomson-East Coast MRT Line and a project in Hong Kong. Its subsidiary has secured two new subcontracts for the Thomson-East Coast Line Napier Station and the Thomson-East Coast Line Marina South Station and Tunnels in Singapore. In addition, its subsidiary in Hong Kong has secured a subcontract for a temporary steel bridge in Hong Kong. (Source: Yongnam)
Ezra: Subsea services division finalises three contracts worth over US$300m with Noble Energy. The scope of work includes engineering, procurement, construction and installation of subsea tie-backs for the Big Bend, Dantzler and Gunflint field developments in the US Gulf of Mexico, which includes over 80 miles (130 km) of Pipe-in-Pipe (PiP) flowlines and over 56 miles (100 km) of umbilicals in water depths up to 7,200ft (2,200 metres). Offshore work will commence in 2015 using five EMAS AMC offshore construction vessels. (Source: Ezra)
GLP: Pre-leases 49,000sqm to leading express delivery providers in eastern China. GLP has signed pre-lease agreements totaling 49,000sqm (or 527,000sf) with Best Logistics and another leading express delivery provider in eastern China. Both customers are existing multi-location customers of GLP and are upgrading from their existing warehouses to GLP's modern facilities. (Source: Global Logistic Properties)
Nam Cheong: Sees record OSV deliveries in 2014-15. Malaysia's biggest builder of offshore support vessels said it expects record deliveries this year and next. This comes as the company's focus on shallow-water oil search products helps it withstand a drop in crude oil prices. (Source: The Business Times)
Mermaid Maritime: Increases stake in Subtech Saudi Arabia to 95%. The company has increased its stake in Subtech Saudi Arabia from 70% by acquiring previous co-shareholder General Technology & Systems Co. through its wholly-owned subsidiary. The remaining 5% in Subtech Saudi Arabia belongs to local interests represented by Integrated Trading Services Establishment. The consideration for the additional 25% stake is US$250,000. (Source: The Business Times)
Sino Grandness: 80.5% of Garden Fresh HK Rmb100m 0% convertible bonds due 2014 extended to 2015. The company has announced that bondholders representing 80.5% of the principal amount of the convertible bonds (CB) have indicated that they intend to exercise their right to extend the maturity date of the CB from 19 Oct 14 to 30 Jun 15. In addition, the company is repurchasing the remaining 19.5% of the principal amount of the CB for about Rmb37.9m. (Source: Sino Grandness)
Swissco: Secures chartering contracts with options worth US$17.3m. The offshore support vessels, comprising two new workboats and one anchor handling tug supply vessel, will be deployed in the Middle East under the contracts. The said contracts are expected to have a positive impact on Swissco’s financial performance from the fourth quarter of the current financial year. (Source: Swissco)
Retail Market Monitor Friday, 10 October 2014
www.utrade.com.sg 4
SINGAPORE
CORPORATE NEWS Tigerair: To right-size operations with sub-lease of 12 aircraft to IndiGo. This sub-lease arrangement enables the group to reduce excess capacity significantly and hence lower related leasing cost. These 12 aircraft will be progressively delivered to IndiGo over six months commencing Oct 14. (Source: Tiger Air) Comments: Tigerair also announced yesterday evening that it is contemplating a rights issue after stating that it will very likely have to make a provision of S$93m on surplus aircraft. We are not surprised by the need for further equity. As at the previous quarter, we stated that Tigerair was operating on negative equity if one were to exclude perpectual securities. We reckon Tigerair would need to raise at least S$150m and one possibility is a 1:2 rights allotment.
Yongnam: Secures three subcontracts worth S$76.6m for Thomson-East Coast MRT Line and a project in Hong Kong. Its subsidiary has secured two new subcontracts for the Thomson-East Coast Line Napier Station and the Thomson-East Coast Line Marina South Station and Tunnels in Singapore. In addition, its subsidiary in Hong Kong has secured a subcontract for a temporary steel bridge in Hong Kong. (Source: Yongnam)
Boustead: Bags 3 deals worth S$137m. Boustead has been awarded three design-and-build contracts, potentially totalling S$137m, in the food, logistics and renewable energy industries in Singapore. The project is expected to be completed in 2015.The latest contracts will raise the group's orderbook backlog to over S$452m. (Source: The Business Times).
Chip Eng Seng: S$150m notes issue well received. Chip Eng Seng Corporation has seen strong demand for its S$150m fixed-rate notes, which are being issued under its S$500m multi-currency debt-issuance programme. (Source: The Business Times).
Kian Ho: To buy two Sophia Rd properties. In its effort to expand the scope of its bearings, seals and power transmission belts business, Kian Ho is planning to buy two properties on Sophia Road for a total of S$15.27m. Each has a lot area of 260 sqm, and has 55 years remaining in its tenure. (Source: The Business Times).
United Envirotech: Takes 49% stake in Sichuan JV.
United Envirotech continued to reap the reward of its new membrane-making business with a partial stake in an initial Rmb1.5b (S$300m) project in western China. United Envirotech will take 49% of a new JV in Sichuan, with Chengdu Xingrong Investment Co taking the remaining 51%. The partnership will have an initial paid-up capital of Rmb50m. (Source: The Business Times).
Chip Eng Seng: S$150m notes issue well received. Chip Eng Seng Corporation has seen strong demand for its S$150m fixed-rate notes, which are being issued under its S$500m multi-currency debt-issuance programme. (Source: The Business Times).
Kian Ho: To buy two Sophia Rd properties. In its effort to expand the scope of its bearings, seals and power transmission belts business, Kian Ho is planning to buy two properties on Sophia Road for a total of S$15.27m. Each has a lot area of 260 sqm, and has 55 years remaining in its tenure. (Source: The Business Times).
United Envirotech: Takes 49% stake in Sichuan JV.
United Envirotech continued to reap the reward of its new membrane-making business with a partial stake in an initial Rmb1.5b (S$300m) project in western China. United Envirotech will take 49% of a new JV in Sichuan, with Chengdu Xingrong Investment Co taking the remaining 51%. The partnership will have an initial paid-up capital of Rmb50m. (Source: The Business Times).
Eurosports & GMG Global: Issue profit warnings. Two Singapore-listed companies on Monday warned ahead of their earnings announcements that they would be making losses. Ultra-luxury and luxury car distributor EuroSports Global said that based on its preliminary assessment, it expects to report a loss for its half- year ended 30 Sep 14. (Source: The Business Times)
Keppel Land: SM-KL project in Manila enters Phase 2. Keppel Land is moving into the second phase of its SM-KL project in the Philippines - a joint venture between Keppel Philippine Properties and Banco de Oro (BDO), the banking arm of the SM Group. This second phase comprises a 42-storey office building and an extension of an existing five-storey retail component called The Podium. This phase's construction cost comes up to S$336m. (Source: The Business Times)
Lian Beng: 1QFY15 net profit surges 59% to S$11.97m. Lian Beng Group enjoyed a 58.5% surge in net profit to S$11.97m for its fiscal first quarter ended Aug 31, on the back of strong construction orders previously clinched. Group revenue rose 10.8% to S$167.64m over the same period, due mainly to an increase in revenue generated from the construction segment and workers' dormitory business, which more than offset the decrease in revenue in the ready-mixed concrete segment. (Source: The Business Times)
SPH Reit: 4Q DPU beats IPO forecast by 6.1%. The real estate investment trust, which is majority owned by media group Singapore Press Holdings, achieved an income distributable to unitholders of S$34.9m for the 4Q ended Aug 31, 2014. This translates to a distribution per unit (DPU) of 1.39 S cents for the quarter - 6.1% higher than forecast in its IPO. (Source: The Business Times)
SembcorpMarine: Jurong Shipyard wins US$696m contract. Jurong Shipyard, a wholly owned subsidiary of Sembcorp Marine (Sembmarine), has won a US$696m deal to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG - a JV between Brazil's Odebrecht Oil & Gas and Teekay Offshore. (Source: The Business Times)
Retail Market Monitor Tuesday, 14 October 2014
www.utrade.com.sg
Keppel Land: SM-KL project in Manila enters Phase 2. Keppel Land is moving into the second phase of its SM-KL project in the Philippines - a joint venture between Keppel Philippine Properties and Banco de Oro (BDO), the banking arm of the SM Group. This second phase comprises a 42-storey office building and an extension of an existing five-storey retail component called The Podium. This phase's construction cost comes up to S$336m. (Source: The Business Times)
Lian Beng: 1QFY15 net profit surges 59% to S$11.97m. Lian Beng Group enjoyed a 58.5% surge in net profit to S$11.97m for its fiscal first quarter ended Aug 31, on the back of strong construction orders previously clinched. Group revenue rose 10.8% to S$167.64m over the same period, due mainly to an increase in revenue generated from the construction segment and workers' dormitory business, which more than offset the decrease in revenue in the ready-mixed concrete segment. (Source: The Business Times)
SPH Reit: 4Q DPU beats IPO forecast by 6.1%. The real estate investment trust, which is majority owned by media group Singapore Press Holdings, achieved an income distributable to unitholders of S$34.9m for the 4Q ended Aug 31, 2014. This translates to a distribution per unit (DPU) of 1.39 S cents for the quarter - 6.1% higher than forecast in its IPO. (Source: The Business Times)
SembcorpMarine: Jurong Shipyard wins US$696m contract. Jurong Shipyard, a wholly owned subsidiary of Sembcorp Marine (Sembmarine), has won a US$696m deal to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG - a JV between Brazil's Odebrecht Oil & Gas and Teekay Offshore. (Source: The Business Times)
Retail Market Monitor Tuesday, 14 October 2014
www.utrade.com.sg
The Dow's correction has more room to move
The Dow's correction has more room to move: "If you understand where a 10 percent pullback is located, you will have the opportunity to take advantage of this temporary correction in the trend. A fall below 10 percent is a signal of a potential trend change.
A 10 percent correction in the DOW would bring the market back to the center line of the long-term uptrend. That's still bullish in anyone's language. A 10 percent correction on the NASDAQ would bring the market back to just above the support level and still well within the long-term up-sloping trading band.
A 10 percent correction on the S&P is more serious. This would drop the S&P below the support level near 1850 and below the lower edge of the long-term Guppy Multiple Moving Average (GMMA). This development would signal a high potential for a major trend change. The S&P is the canary in the coal mine."
Fundamentally, the biggest threat to markets is Ebola, not ISIS. Ebola has the capacity to rapidly overwhelm health systems and paralyze work environments.
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A 10 percent correction in the DOW would bring the market back to the center line of the long-term uptrend. That's still bullish in anyone's language. A 10 percent correction on the NASDAQ would bring the market back to just above the support level and still well within the long-term up-sloping trading band.
A 10 percent correction on the S&P is more serious. This would drop the S&P below the support level near 1850 and below the lower edge of the long-term Guppy Multiple Moving Average (GMMA). This development would signal a high potential for a major trend change. The S&P is the canary in the coal mine."
Fundamentally, the biggest threat to markets is Ebola, not ISIS. Ebola has the capacity to rapidly overwhelm health systems and paralyze work environments.
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Stocks to watch: SMRT, Sembmarine, Yoma, United Envirotech, UniFiber, DBS, Stocks - THE BUSINESS TIMES
Stocks to watch: SMRT, Sembmarine, Yoma, United Envirotech, UniFiber, DBS, Stocks - THE BUSINESS TIMES:
Here are several stocks to watch, given the latest news events:
1. SMRT Corp which said on Monday that it has decided not to make a bid at this stage to acquire British taxi company, Addison Lee.
It was responding to reports that SMRT was considering a takeover bid for Addison Lee. Britain's Sky News had reported that the Singapore transport operator was in the early stages of making an offer of £800 million (S$1.6 billion) for the taxi company.
SMRT said it was approached by an investment bank on the possible sale of Addison Lee, but after considering the matter, it decided against making a bid at this point.
2. Sembcorp Marine (Sembmarine) which announced a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.
This brings Sembmarine's new contracts secured year-to-date to S$3.7 billion.
3. Yoma Strategic which has teamed up with New York-listed Yum! Brands to bring the first KFC restaurant to Myanmar in 2015, with Yoma as its franchise partner.
Yoma said this is an important step to achieving its goal towards being a key player in the country's food and beverage sector.
4. United Envirotech on Friday evening said it has agreed to take a 49 per cent stake in a joint venture to carry out an initial 1.5 billion yuan (S$311 million) worth of projects in western China.
Its joint venture partner is Chengdu Xingrong Investment Co, which takes the remaining 51 per cent.
The JV will provide engineering, procurement and construction using United Envirotech's membrane technology and products.
5. United Fiber System (UniFiber) after its auditors refrained from expressing an opinion on its interim consolidated financial statements. The financial statements for the period ended June 30, 2014, were prepared in connection with its proposed acquisition of Jakarta-listed coal miner PT Golden Energy Mines (Gems) through a reverse takeover.
UniFiber's directors, however, said the firm is able to settle its debt. This is assuming its proposed acquisition of Gems is successful - with the help of a planned compliance share placement, as well as a further issuance of bonds and shares if the acquisition and compliance share placement go through.
6. DBS Bank which has joined the World Bank's Global Infrastructure Facility (GIF) as an advisory partner. Launched on Thursday in Washington, the GIF aims to catalyse and mobilise private-sector investment in infrastructure projects in emerging markets.
As an advisory partner, DBS will offer advice on project preparation, optimal approaches to financial structuring and the design and use of risk instruments to ensure the suitability of emerging-market infrastructure projects for commercial or institutional investment.
'via Blog this'
Here are several stocks to watch, given the latest news events:
1. SMRT Corp which said on Monday that it has decided not to make a bid at this stage to acquire British taxi company, Addison Lee.
It was responding to reports that SMRT was considering a takeover bid for Addison Lee. Britain's Sky News had reported that the Singapore transport operator was in the early stages of making an offer of £800 million (S$1.6 billion) for the taxi company.
SMRT said it was approached by an investment bank on the possible sale of Addison Lee, but after considering the matter, it decided against making a bid at this point.
2. Sembcorp Marine (Sembmarine) which announced a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.
This brings Sembmarine's new contracts secured year-to-date to S$3.7 billion.
3. Yoma Strategic which has teamed up with New York-listed Yum! Brands to bring the first KFC restaurant to Myanmar in 2015, with Yoma as its franchise partner.
Yoma said this is an important step to achieving its goal towards being a key player in the country's food and beverage sector.
4. United Envirotech on Friday evening said it has agreed to take a 49 per cent stake in a joint venture to carry out an initial 1.5 billion yuan (S$311 million) worth of projects in western China.
Its joint venture partner is Chengdu Xingrong Investment Co, which takes the remaining 51 per cent.
The JV will provide engineering, procurement and construction using United Envirotech's membrane technology and products.
5. United Fiber System (UniFiber) after its auditors refrained from expressing an opinion on its interim consolidated financial statements. The financial statements for the period ended June 30, 2014, were prepared in connection with its proposed acquisition of Jakarta-listed coal miner PT Golden Energy Mines (Gems) through a reverse takeover.
UniFiber's directors, however, said the firm is able to settle its debt. This is assuming its proposed acquisition of Gems is successful - with the help of a planned compliance share placement, as well as a further issuance of bonds and shares if the acquisition and compliance share placement go through.
6. DBS Bank which has joined the World Bank's Global Infrastructure Facility (GIF) as an advisory partner. Launched on Thursday in Washington, the GIF aims to catalyse and mobilise private-sector investment in infrastructure projects in emerging markets.
As an advisory partner, DBS will offer advice on project preparation, optimal approaches to financial structuring and the design and use of risk instruments to ensure the suitability of emerging-market infrastructure projects for commercial or institutional investment.
'via Blog this'
Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News
Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News:
Rennie Whang
The Straits Times
Monday, Oct 13, 2014
Shareholders of entertainment firm St James Holdings have overwhelmingly approved a $1.56 billion proposed reverse takeover of their company by Perennial Real Estate Holdings (PREH).
All 18 resolutions put to investors at yesterday's extraordinary general meeting were backed, with more than 99 per cent in favour.
St James Holdings chief executive Dennis Foo said after the meeting: "We are pleased with the strong support... (for the transaction) to transform the company into a sizeable real estate developer, owner and manager.
"Our objective to preserve and enhance shareholders' value has been achieved through this restructuring exercise."
In the first phase of the transaction, Perennial and other vendors will inject unlisted property assets into St James for $1.56 billion, which will be raised by issuing new shares.
Once this stage is completed - estimated to be around Oct 27 - St James will be renamed Perennial Real Estate Holdings Limited and transferred from the Catalist to the mainboard. It will operate as a property developer with assets here and in China.
Investors also backed a move yesterday to privatise St James' existing entertainment business, which has been hit by a challenging business environment and rising operating costs. All its 13 bars and clubs here, including Peppermint Park, Mono and mandopop club Shanghai Dolly at Clarke Quay, will be sold to CityBar Holdings and taken private.
The second phase involves a share swap for the remaining units of the PREH-sponsored business trust Perennial China Retail Trust. The units will be swapped for 70 cents apiece for new shares in Perennial Real Estate Holdings Limited.
PREH's holdings include Chijmes, TripleOne Somerset and Capitol Singapore here and 11 Chinese assets such as the Beijing Tongzhou Integrated Development and large-scale projects connected to high-speed rail stations in Xian and Chengdu.
PREH vice-chairman and president Pua Seck Guan said yesterday that the new firm will have a net asset value of about $1.9 billion and be a "dominant commercial developer... expected to provide shareholders with growth and (a) steady income stream from its China and Singapore assets".
This article was first published on Oct 11, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.
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Rennie Whang
The Straits Times
Monday, Oct 13, 2014
Shareholders of entertainment firm St James Holdings have overwhelmingly approved a $1.56 billion proposed reverse takeover of their company by Perennial Real Estate Holdings (PREH).
All 18 resolutions put to investors at yesterday's extraordinary general meeting were backed, with more than 99 per cent in favour.
St James Holdings chief executive Dennis Foo said after the meeting: "We are pleased with the strong support... (for the transaction) to transform the company into a sizeable real estate developer, owner and manager.
"Our objective to preserve and enhance shareholders' value has been achieved through this restructuring exercise."
In the first phase of the transaction, Perennial and other vendors will inject unlisted property assets into St James for $1.56 billion, which will be raised by issuing new shares.
Once this stage is completed - estimated to be around Oct 27 - St James will be renamed Perennial Real Estate Holdings Limited and transferred from the Catalist to the mainboard. It will operate as a property developer with assets here and in China.
Investors also backed a move yesterday to privatise St James' existing entertainment business, which has been hit by a challenging business environment and rising operating costs. All its 13 bars and clubs here, including Peppermint Park, Mono and mandopop club Shanghai Dolly at Clarke Quay, will be sold to CityBar Holdings and taken private.
The second phase involves a share swap for the remaining units of the PREH-sponsored business trust Perennial China Retail Trust. The units will be swapped for 70 cents apiece for new shares in Perennial Real Estate Holdings Limited.
PREH's holdings include Chijmes, TripleOne Somerset and Capitol Singapore here and 11 Chinese assets such as the Beijing Tongzhou Integrated Development and large-scale projects connected to high-speed rail stations in Xian and Chengdu.
PREH vice-chairman and president Pua Seck Guan said yesterday that the new firm will have a net asset value of about $1.9 billion and be a "dominant commercial developer... expected to provide shareholders with growth and (a) steady income stream from its China and Singapore assets".
This article was first published on Oct 11, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.
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