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Stocks to watch: Mapletree Commercial Trust, Geo Energy, Lereno Bio-chem

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THE following companies made announcements after the market closed on Monday that could affect its shares when trading re-opens:

The trustee of Mapletree Commercial Trust, DBS Trustee Limited, is planning to acquire Mapletree Business City's office and business park components for S$1.78 billion. The deal is expected to contribute a net property income yield of about 5.6 per cent without any income support, higher than the Reit's existing portfolio NPI yield of 5.1 per cent, said the trust manager.

Indonesian coal mining group Geo Energy has secured a deal to supply coal to global commodities group Engelhart Commodities Trading Partners (Singapore), until recently known as BTG Pactual Commodities, for the entire lifespan of its wholly owned coal mine.

At current coal prices,the deal is worth an estimated US$1.2 billion, said its CEO Tung Kum Hon.

An independent auditor has highlighted that material uncertainties relating to Lereno Bio-Chem cast significant doubt on the group's and the company's ability to continue as a going concern.

This was in the light of the group incurring losses and total comprehensive loss of S$1.237 million and S$1.238 million respectively, and net operating cash outflows of S$800,000 for the financial year ended March 2016. In addition, the group's current liabilities exceed the group's and the company's assets by S$5.62 million and S$5.54 million respectively.