Director ups stake as MNACT pursues portfolio expansion

FOR the five trading sessions that spanned May 28 to June 3, the Straits Times Index (STI) ended unchanged at 3,165.00, maintaining the STI's total return for the 2021 year to June 3 at 13.1 per cent.

Within the STI, OCBC, Genting Singapore, CapitaLand Integrated Commercial Trust, Mapletree Industrial Trust and UOB received the highest net institutional inflows from May 28 to June 3.

Outside the STI, Nanofilm Technologies International, Suntec Reit, Frasers Centrepoint Trust, Singapore Press Holdings and UMS Holdings received the highest net institutional inflows over the five sessions.

Share buybacks

There were nine primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$26,353,204.

As observed over the preceding four sessions, OCBC, Singapore Exchange and Singapore Telecommunications led the consideration tally.

Director and substantial shareholder transactions

The five trading sessions saw 130 changes in director interests and substantial shareholdings filed for close to 50 primary-listed stocks.

This included 16 company director acquisitions with three disposals, while substantial shareholders filed five acquisitions and nine disposals

Jiutian Chemical Group

On June 1, Jiutian Chemical Group executive director Lee Chee Seng sold 25 million shares of the Catalist-listed company for a consideration of S$2,438,000.

At 9.75 cents per share, this took his total interest in the manufacturer and producer of dimethylformamide and methylamine from 2.80 per cent to 1.54 per cent.

His preceding transaction was an acquisition of one million shares on Nov 13, 2020 at 9.00 cents per share.

Mr Lee is responsible for corporate finance and strategic planning for the group.

On May 14, Jiutian's non-executive and non-independent chairman Han Lianguo announced for the first time since FY08, the company would pay an interim dividend, with the 0.35 cents per share interim dividend going ex-dividend on June 2.

He noted that the dividend payout was made possible after a strong financial performance of the group in FY20 (ended Dec 31), driven largely by the strong post Covid-19 recovery of China's economy.

He added that the released unaudited financial results of Q1FY21 showed that strong demand for its main products continued to gather momentum in 2021.

Barring any significant resurgence of Covid-19 in China, the company anticipates the production operations of the group to be smooth and product prices to remain stable for the rest of the financial year.

Healthway Medical Corporation

On June 3, Healthway Medical Corporation executive director and deputy CEO Abram Melkyzedeck Suhardiman acquired 26,739,200 shares of the Catalist-listed company for a consideration of S$831,488.

At an average price of 3.1 cents per share, the married deal increased his direct interest in Healthway Medical from 0.93 per cent to 1.52 per cent.

Mr Suhardiman is responsible for overseeing the group's operations and corporate support functions including finance, legal, marketing, human resources, corporate communications and information technology divisions, and assisting the CEO in strategic planning and managing all aspects of the company and the group's business.

Alset International

Between April 30 and May 5, Alset International (formerly Singapore eDevelopment) executive chairman and CEO Chan Heng Fai acquired 8,759,700 shares of the Catalist-listed company for a consideration of S$559,768 at 6.3 cents per share.

This increased his total interest from 85.26 per cent to 85.55 per cent.

A banking and finance expert with years of experience, Mr Chan has restructured over 35 companies in various industries and countries in the past 40 years.

He was also the managing director of SingHaiyi Group. Under his leadership, SingHaiyi transformed from a fit-out and furnishing business with a net asset value of less than S$10 million into a property investment and development company with a net asset value of more than S$150 million when he ceded controlling interest in late 2012.

Mr Chan noted in the Alset International Annual Report 2020 that the company is now at a crucial inflection point, having posted a strong earnings turnaround for FY20 (ended Dec 31) which was a first since it kick-started its corporate recovery plans back in 2013.

Mapletree North Asia Commercial Trust

On June 1, Mapletree North Asia Commercial Trust Management non-executive director Chua Tiow Chye acquired 250,000 units of Mapletree North Asia Commercial Trust (MNACT) for a consideration of S$262,500.

At S$1.05 per unit, the open market acquisition increased his total interest in MNACT from 0.06 per cent to 0.07 per cent.

Mr Chua is the deputy group chief executive officer of MNACT's sponsor, Mapletree Investments Pte Ltd.

Mr Chua focuses on driving the sponsor's strategic initiatives including expanding and directing Mapletree Group's international real estate investments and developments.

He also directly oversees Mapletree Group's Global Lodging sector as well as the private capital management function of the sponsor.

On May 28, the manager of MNACT announced that the trustee of MNACT had entered into a sales and purchase agreement to buy a 98.47 per cent interest in a freehold single-tenanted office building in Greater Tokyo.

At present, the building serves as the Hewlett-Packard Japan headquarters with a 100 per cent occupancy rate.

Expected to be DPU-accretive, the total acquisition cost is S$490.6 million, with completion expected by June 30, and funding through a combination of debt financing and the issuance of perpetual securities.

On May 31, the trustee of MNACT priced S$250.0 million of perpetual securities at 3.50 per cent.

This was its first issuance of perpetual securities, which was oversubscribed.

The manager of MNACT expects the portfolio property value of MNACT to increase to S$8.4 billion (including the 50 per cent The Pinnacle Gangnam interest) on completion of the acquisition.

Since listing in March 2013, MNACT has delivered 8.3 per cent average annualised total returns, with the initial property value of the portfolio at S$4.3 billion.

Second Chance Properties

Between May 27 and June 3, Second Chance Properties founder and CEO Mohamed Salleh Marican acquired 1,000,100 shares of the company for a consideration of S$275,028.

At 27.5 cents per share, this increased his total interest in the properties and securities investor, apparel and gold retailer, from 68.88 per cent to 69.01 per cent.

Mr Salleh has gradually increased his total interest in Second Chance Properties from 68.98 per cent at the end of 2020.

United Global

On May 31, United Global non-executive chairman, Edy Wiranto acquired 1.0 million shares of the Catalist-listed company for a consideration of S$405,000.

At 40.5 cents per share, the married deal took his total interest in United Global from 6.59 per cent to 6.91 per cent.

This followed his acquisition of 2.6 million shares at 42.0 cents per share on March 1.

He is responsible for the overall strategic direction of the group.

His career spans over 30 years with top management positions in mining, shipping, construction and heavy equipment leasing business.

The independent lubricant manufacturer has a market value of close to S$130 million and listed on Catalist in July 2016, with a fully subscribed placement at 25.0 cents per share.

• The writer is the market strategist at Singapore Exchange (SGX). To read SGX's market research reports, visit sgx.com/research.