Corporate digest

Lian Beng

UNITED Tec Construction, a 60 per cent-owned subsidiary of Lian Beng Group, has bagged a contract worth about S$118 million to build a residential flat development at Ang Mo Kio Avenue 1, the mainboard-listed company announced on Monday (Oct 18).

The contract is awarded by United Venture Development (2021), a joint venture between UOL Group, Singapore Land Group and Kheng Leong Company. The development comprises a 24-storey and a 25-storey block, with a total of 372 units, as well as a carpark, swimming pool and communal facilities. The contract period is 47 months.

The development is expected to have a positive financial impact on Lian Beng's earnings for the current financial year ending May 2022. As at Oct 18, the company's order book stood at about S$1.4 billion, which it said will "provide a sustainable flow of activity through FY2026".

Shares of Lian Beng closed flat at S$0.505 on Oct 18.

Thomson Medical

THOMSON Medical Group is defending its appointment of Lam Lee G as an independent director for an aggregate period of more than nine years, in response to queries from the Singapore Exchange.

As disclosed in a Monday (Oct 18) filing, the bourse queried Thomson Medical on whether the company had subjected Dr Lam's term to "particularly rigorous review", and why he should be considered independent despite his long tenure.

According to past annual reports of the company, then called Rowsley, Dr Lam was appointed an independent director in June 2002. He resigned in April 2018 and was reappointed to the board in May 2019. Rowsley became Thomson Medical after acquiring the healthcare business in 2018.

In its response to SGX, Thomson Medical noted that it appointed a new management team following its 2018 healthcare acquisition. "When Dr Lam was reappointed to the board on May 2, 2019, he was working with a completely new management team and a refreshed board of directors," the company said.

Its reappointment of Dr Lam was based on his "expertise, experience and the requisite qualifications", Thomson Medical added. Dr Lam does not own shares in the company.

Shares of Thomson Medical closed flat at S$0.092 on Oct 18.

Beng Kuang Marine

MAINBOARD-LISTED Beng Kuang Marine is set to raise S$3.35 million via a share placement exercise, with its chief executive taking up a portion, the company announced in an Oct 18 bourse filing.

Beng Kuang will issue 37.2 million new shares at S$0.09 per share, priced at a 9 per cent discount to its volume-weighted average price of S$0.0989 per share on Oct 14.

Its chief executive, Yong Jiunn Run, has provided an undertaking to the company and to the placement agent, SAC Capital, to subscribe for up to 5.6 million placement shares at the same price. This represents about 3.46 per cent of the existing share capital.

Assuming all the 37.2 million shares are placed out, Yong will own 2.81 per cent of the enlarged share capital. The identities of the other subscribers were not stated in the filing.

Beng Kuang will use the proceeds for operational needs and to reduce its reliance on debt.

Shares of Beng Kuang last traded at S$0.099, before a trading halt.