LJHB acquires 21% of Keong Hong; Riverstone chair continues to build stake

FOR the five local trading sessions that spanned Dec 11 to 17, the Straits Times Index (STI) gained 1.2 per cent with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging 0.7 per cent gains. This has brought the STI's decline in total return for the 2020 year to Dec 17 to 7.6 per cent.

Over the five sessions, the iEdge S-Reit Leaders Index gained 2.8 per cent, bringing its decline in total return for the 2020 year to Dec 17 to 1.4 per cent.

Share buybacks

There were 14 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$30.0 million, similar to the preceding week's S$30.8 million.

Japfa, Wilmar International and Yangzijiang Shipbuilding (Holdings) led the consideration tally.

As of Dec 17, Japfa has bought back 17,405,500 shares or 0.85 per cent of its issued shares (excluding treasury shares) from the start of its current mandate.

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Between Dec 11 and 17, Japfa bought 14,421,400 shares at an average price of 87.68 cents per share.

Its share price has gained from 58 cents per share at the end of 2019.

Japfa CEO Tan Yong Nang highlighted back on Oct 29 that core PATMI (without forex) for the first nine months of 2020 had already exceeded that of the full-year of 2019 driven by the strong momentum of its two key pillars Dairy-China and Swine-Vietnam since Q2FY20.

Mr Tan has a 4.14 per cent deemed interest in Japfa as at Dec 14.

Director and substantial shareholder transactions

The five trading sessions saw 50 changes in director interests and substantial shareholdings filed for 27 primary-listed stocks.

This included 15 company director acquisitions, with one disposal filed, and substantial shareholders filing four acquisitions and nine disposals.

Keong Hong Holdings

On Dec 15, LJHB Holdings (S) Pte Ltd (LJHB) acquired 49,352,100 shares from Keong Hong Holding's chairman and CEO, Ronald Leo, through an off-market transaction, representing 21.0 per cent of Keong Hong Holdings issued share capital (excluding treasury shares).

Following the transaction, Mr Leo remains the single largest shareholder of Keong Hong Holdings with shareholding of 30.85 per cent in the company.

LJHB is primarily in the asset investment business in real estate and hospitality related sectors in the region, and investing in Keong Hong will provide a platform for their future real estate projects in Singapore.

Similarly, Keong Hong Holdings has stated that it will also be able to leverage LJHB's wide business network to enhance its regional expansion plans and competitiveness.

The principal activities of Keong Hong Holdings include building construction, property and hotel investor and developer.

Its building construction services include a broad range of residential, commercial, institutional, industrial and infrastructural projects for both private and public sectors and the group has property and hotel development and investment projects in Singapore, Japan and the Maldives.

Riverstone Holdings

Between Dec 14 and 17, Riverstone Holdings executive chairman and CEO Wong Teek Son acquired 150,000 shares of the company for a consideration of S$165,200 at an average price of S$1.10 per share. He maintains a 51.15 per cent total interest in Riverstone Holdings.

He is the founder of Riverstone with executive responsibilities including developing business strategies and overseeing the group's operations.

Mr Wong's preceding acquisitions were on Dec 4 with 60,000 shares acquired at S$1.22 per share, between Dec 1 and 2 with 100,000 shares acquired at S$1.32 per share and between Nov 20 and 24, with 200,000 shares acquired at S$1.35 per share.

Roxy-Pacific Holdings

Between Dec 9 and 15, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 125,000 shares of the company for a consideration of S$43,750.

This increased his total interest in the established property and hospitality group from 0.88 per cent to 0.89 per cent.

The five acquisitions of 25,000 shares at 35 cents per share followed on from a very similar pace of acquisitions for the preceding week.

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

LY Corporation

On Dec 14, LY Corporation executive chairman Tan Kwee Chai acquired 120,000 shares of the company for a consideration of S$22,800 at 19 cents per share.

This took his total stake in the manufacturer and exporter of wooden bedroom furniture to 72.37 per cent.

Mr Tan has been a director of LY Furniture Sdn Bhd since its incorporation and is responsible for the group's overall management and operations, including formulating its strategic directions and expansion plans.

The group operates from 19 factories and warehouses, occupying a combined built-up area of approximately 1.6 million square feet.

LY Corporation's products are sold mainly to overseas dealers such as furniture wholesalers and retailers, who generally resell the products to end-users through their respective retail networks and domestic customers who are primarily third-party agents who typically export and resell its products outside Malaysia, such as to the United States.

JEP Holdings

On Dec 11, JEP Holdings executive director Zee Hoong Huay acquired 100,000 shares of the company for a consideration of S$19,500.

This increased his total interest in JEP Holdings from 15.78 per cent to 15.80 per cent.

It followed his acquiring 195,700 shares at 19.61 cents per share between Dec 4 and 9 and 193,800 shares between Dec 1 and 3 at 19.65 cents per share.

Mr Zee is a veteran in the metal tooling and precision engineering industries.

JEP Holdings is a leading solutions provider of precision machining and engineering services, with a primary focus on the aerospace industry with over 30 years of operating history.

Hai Leck Holdings

On Dec 16, Hai Leck Holdings founder, executive chairman and CEO, Cheng Buck Poh acquired 38,200 shares of the EPC services company for a consideration of S$18,336 at 48 cents per share.

This took his total interest in Hai Leck Holdings from 84.81 per cent to 84.83 per cent.

Mr Cheng started Hai Leck Engineering as a sole proprietorship in 1971 and is currently responsible for charting the corporate directions and strategies for Hai Leck Holdings.

Mr Cheng noted in the FY20 (ended June 30) annual report that the group's involvement in project and maintenance services is highly dependent on the performance of the oil and gas industry, which has struggled recently due to the depressed and volatile oil prices.

From the end of June, the price of Brent Crude in SGD terms has gained 19 per cent, which has corresponded with the share price of Hai Leck Holdings gaining 20 per cent, from 40 cents to 48 cents.

Mr Cheng's total interest in Hai Leck Holdings has gradually increased from 83.34 per cent at the end of August 2018

Aedge Group

On Dec 14, Aedge Group, a Singapore-based multi-services provider, listed on the SGX Catalist Board.

The group provides three principal services, namely engineering services, transport services and security and manpower services.

The IPO, by way of a placement, attracted positive interest from investors with all 16 million shares validly subscribed for, raising a total of S$3.2 million.

Aedge Group plans to utilise the proceeds to strengthen its core capabilities and further its business strategies and future plans.