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Stocks to watch: AA Reit, Frasers Centrepoint, JEP Holdings, Silverlake Axis
THE following companies released filings with the Singapore Exchange after the market closed on Monday which could affect the trading of their shares.
AIMS AMP Capital Industrial Reit (AA Reit): AA Reit is divesting a factory building in Jurong Industrial Estate for S$8.17 million. The S$8.17 million sale price of the property at 10 Soon Lee Road represents a 28 per cent premium over the property's latest valuation of S$6.4 million. It is AA Reit's smallest asset and has a remaining land lease tenure of less than 24 years. Net proceeds from the divestment will be used to pare down existing debt to reduce aggregate leverage and create additional debt headroom for future acquisitions, asset enhancement initiatives or development opportunities, said AA Reit's manager. The property contributed 0.8 per cent of the annual gross rental income for the financial year ended March 31, 2017.
Frasers Centrepoint Singapore: Frasers Centrepoint has secured lease commitments of over 70 per cent for Frasers Tower in the Central Business District. The developer announced on Monday that it has confirmed two anchor tenants - Microsoft Singapore and French integrated oil and gas company Total Oil - which will occupy a combined space of 232,200 sq ft in the upcoming 38-storey office building. Other tenants include names in the financial, business and consumer goods sectors, such as Sumitomo Corporation, Arup, Fonterra and Pacific Life. Frasers Tower, which has a total net lettable area of about 663,000 sq ft, comprises a 38-storey Premium Grade-A office tower and an adjacent three-storey cascading retail podium with a roof garden. Close to 50 per cent of the building's retail podium has also been leased, said Frasers Centrepoint.
JEP Holdings: An unrelated third party has been in talks with the executive directors of JEP Holdings in their personal capacities over a possible deal to acquire a controlling interest in the company. The stock stood out as one of the most actively traded counters on Monday, with a volume of 193.8 million shares. It closed 7 per cent or 0.04 Singapore cent higher at 6.1 Singapore cents. JEP said that the board has received information that the third party - who was not named - has been in talks with executive directors Joe Lau and Zee Hoong Huay over a possible transaction that involves the acquisition of a portion of the existing shares of the company beneficially owned by them. If the transaction goes through, this could result in the third party acquiring at least 15 per cent - and a controlling interest - of the company.
Silverlake Axis: Silverlake has sold two million shares of Global InfoTech Co (GIT) on the secondary market of the Shenzhen Stock Exchange for 23.6 million yuan (S$4.8 million), or 11.75 yuan apiece. The sale was carried out on Jan 11, the software provider to financial institutions told the Singapore Exchange in a filing on Monday. The company now has 39.59 million remaining shares in GIT. Silverlake said that it plans to use proceeds from the disposal for general working capital purposes, special dividends, the reduction of borrowings and/or other business opportunities as and when they arise.