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Six SGX stocks commence buybacks
FOR the 2018 year through to July 5, the Straits Times Index (STI) generated a 2.6 per cent decline in total return, compared to the Nikkei 225, Hang Seng and S&P/ASX 200 Indices averaging a 0.4 per cent decline in total return. Meanwhile the Dow Jones has gained 1.8 per cent in SGD terms. For the five trading sessions ended July 5, the STI was unchanged, with the three regional benchmarks averaging a 1.4 per cent decline.
Buyback momentum was maintained over the five sessions ended July 5 with consideration totalling S$28.4 million. Six STI stocks conducted buybacks over the five sessions with United Overseas Bank leading the tally with 433,784 shares bought back for a consideration of S$11.7 million. Of the large number of stocks conducting buybacks, mandates were commenced for Kimly, Ban Leong Technologies, Valuetronics Holdings, Ho Bee Land, XMH Holdings and S I2I.
Director and substantial shareholder transactions
The five sessions spanning June 29 to July 5 saw 68 primary-listed stocks lodge close to 150 changes in director interests or substantial shareholders' transactions. There were 33 company director acquisitions and one disposal filed, while substantial shareholders filed 19 acquisitions and 11 disposals.
On July 4, Tikehau Investment Management Asia Pacific Pte Ltd (TIM AP) announced it had entered into a sale and purchase agreement, in which Dolphin Two Pte Ltd agreed to procure the sale of 27,651,499 of units in IREIT Global held by Lim Chap Huat to TIM AP (or any one or more of its affiliates, including without limitation Tikehau Capital SCA). The total consideration of the 27,651,499 units amounts to S$21,015,139. This takes Tikehau Capital SCA's total direct and deemed stake in IREIT Global from 3.61 per cent to eight per cent.
As part of the agreement, TIM AP will also acquire an additional 4.52 per cent of the shares in the manager of IREIT Global - IREIT Global Group Pte Ltd, thereby bringing its total stake to 84.52 per cent in the manager upon completion of the transaction.
Tikehau Capital is an asset management and investment group with 14.2 billion euros worth of assets under management as at March 31, 2018 and shareholders' equity of 2.5 billion euros as at the end of 2017. The group invests in various asset classes (private debt, real estate, private equity and liquid strategies).
IREIT Global's current portfolio comprises five freehold properties strategically located in the German cities of Berlin, Bonn, Darmstadt, Münster and Munich with a total net lettable area of approximately 200,700 sqm and 3,400 car park spaces. For its Q1FY18 (ended March 31) IREIT Global reported Q1FY18 DPU of 1.46 Singapore cents which was 1.4 per cent higher year on year (yoy).
On June 29, Win Charm Limited (Win Charm) acquired 44,150,500 shares of China Jinjiang Environment Holding Company Limited (CJE) at S$0.46 per share. The consideration of the married deal totalled S$20,309,230 and took the direct stake of Win Charm in CJE from 19.21 per cent to 22.28 per cent.
Win Charm is indirectly wholly owned by Dou Zhenggang and his spouse, Wei Xuefeng, who are the ultimate controlling shareholders of CJE. Win Charm also holds just under 50 per cent of the voting shares in the issued and paid-up share capital of China Green Energy Limited, the parent and holding company of CJE. Accordingly, Win Charm's total interest in CJE now stands at 55.31 per cent.
CJE is a leading waste-to-energy (WTE) operator in China. As highlighted in the CJE FY17 Annual Report, apart from the continued expansion of its domestic footprint, the company is actively taking the cue from the "One Belt One Road" initiative in setting its sights overseas, and successfully secured three WTE projects in India in FY17.
The group has also successively explored markets such as Germany, Brazil and Indonesia and applied its mature and advanced technologies and operating models in countries and regions with similar waste composition as China's.
More recently, on June 1, CJE announced the acquisition by its wholly-owned subsidiary PT Jinjiang Environment Indonesia of a 95 per cent stake in PT Indo Green Power. The target had secured a concession to construct, own and operate a WTE facility in Palembang, Indonesia with a total installed waste treatment capacity of 1,000 tonnes per day.
On June 13, CJE announced that it had secured a syndicated term loan facility of US$200 million and RMB100 million with Standard Chartered Bank (Hong Kong) Limited and Standard Chartered Bank (China) Limited as the respective lead arranger, bookrunner and agent.
Prior to this, on May 28, CJE completed the placement of 214 million new ordinary shares to Harvest Global Dynamic Fund SPC acting on behalf of and for the account of Harvest Environmental Investment Fund SP. The placement took Ping An Insurance (Group) Company of China Ltd's deemed interest in CJE to 14.91 per cent, as it was deemed interested in the placement shares.
Between July 2 and 3, Yanlord Land Group (Yanlord) founder chairman and CEO Zhong Sheng Jian purchased 1,325,900 shares of the stock for a consideration of S$2,023,952.
Mr Zhong, who is responsible for the overall management and strategy development of the group, increased his stake in the stock to 70.11 per cent which has gradually increased from 68.37 per cent at the end of 2017.
On June 28, Wilmar International (Wilmar) non-executive director Kuok Khoon Hua acquired 225,000 Wilmar Shares at S$3.04 per share. The consideration of the acquisition totalled S$684,000 and took Mr Kuok's total stake in Wilmar to 0.848 per cent.
This followed a similar transaction on June 25 which saw Mr Kuok acquire 222,000 shares at S$3.08 per share. Mr Kuok was first appointed to the Wilmar board in July 2016, and also serves as the chairman of Kerry Holdings Limited, the main investment holding company of the Kuok Group in Hong Kong.
On June 29, UOL Equity Investments Pte Ltd acquired 70,000 shares of United Industrial Corporation (UIC) for a consideration of S$226,027 at an average price of S$3.22896 per share. This took the total stake in UIC held by its chairman, Wee Cho Yaw, to 50.0579 per cent.
Veteran banker Steven Ong Kay Eng continued to increase his total stake in Hwa Hong Corporation (Hwa Hong) with the acquisition of 600,000 shares.
The transactions dated between June 27 and July 4 totalled S$194,106, and increased his stake in Hwa Hong to 13.504 per cent. Mr Ong has gradually grown his stake in the company from 10.804 per cent on Nov 28, 2016, and 7.38 per cent at the end of 2014.
Between June 28 and 29 ABR Holdings managing director Ang Yee Lim acquired 200,500 shares of the company for a consideration of S$172,779. This took his stake in the stock from 49.966 per cent to 50.065 per cent.
This followed on from Mr Ang acquiring 451,900 shares of the stock for a consideration of S$376,923 between June 22 and 27.
On July 5, Silverlake Axis (Silverlake) independent non-executive director Ong Kian Min acquired 200,000 shares of Silverlake Axis for a consideration of S$102,000 taking his stake in the company to 0.038 per cent.
CEO and group managing director Kwong Yong Sin also acquired 100,000 shares of Silverlake on July 5, taking his stake in the stock to 0.694 per cent.
On June 27, Thai Beverage Public Company Limited (ThaiBev) director and executive vice-president Ueychai Tantha-Obhas acquired 170,000 shares of the company at S$0.74 per share. The consideration of the transaction totalled S$125,000 and took his stake in ThaiBev to 0.0013 per cent.
Mr Ueychai Tantha-Obhas was appointed to this position in May 2010 and was previously director and senior vice-president of the company from July 2005, and a director of Oishi Group Public Company Limited since January 2006.
On June 27, UnUsUaL executive director and CEO Johnny Ong Chin Leong acquired 297,700 shares of the company at an average price of S$0.4652 per share. With a consideration of S$138,502 this took his total stake in UnUsUaL to 76.85 per cent.
This followed a preceding acquisition of 100,000 UnUsUaL shares by Mr Ong at S$0.4486 per share on June 26.
Meanwhile on June 29, UnUsUaL Management Pte Ltd acquired 158,300 shares of the stock for a consideration of S$72,226.
This took UnUsUaL Management Pte Ltd's stake in UnUsUaL to 76.80 per cent, and further increased Mr Ong's total interest in UnUsUaL from the aforementioned 76.85 per cent to 76.86 per cent.
On June 28, Aerodrome International Limited increased its deemed interest in Delfi to 51 per cent. The acquisition of 100,000 shares for a consideration of S$129,980 also increased Delfi Group CEO John Chuang Tiong Choon's stake in the stock to 51.389 per cent.
Mr Chuang is deemed to be interested in all the shares held (directly or indirectly) by his spouse, Lim Mee Len, who in turn, is deemed interested in all shares held (directly or indirectly) by Aerodrome International Limited. Mr Chuang established the company in 1984 and was appointed to the Delfi board at that time, before being appointed CEO in November 2004.
On June 29, GuGong Pte Ltd acquired 400,000 shares of No Signboard Holdings for a consideration of S$79,356. This followed its acquisition of almost two million shares between June 20 and 28.
No Signboard Holdings executive chairman and CEO Sam Lim Yong Sim maintains a 93.64 per cent stake of GuGong Pte Ltd. Mr Lim's stake in No Signboard holdings has hence increased from 74.06 per cent to 74.15 per cent.
Mr Lim joined the group in 1998 and has spearheaded its development and expansion over the past two decades.
UOB-Kay Hian Holdings (UOBKH) chairman and managing director Wee Ee Chao marginally increased his total stake in UOBKH which now stands at 27.48 per cent. Mr Wee acquired a total of 48,400 shares between June 29 and July 2 for a consideration of S$61,498.
The chairman has gradually increased his total stake in UOBKH from 26.51 per cent at the end of 2017.
On June 29, ayondo independent director Chan Heng Toong acquired 250,000 shares of the company for a consideration of S$22,978. This took his direct interest in the online trading and social trading platform to 0.2 per cent.
Mr Chan has 33 years of experience in corporate and investment banking in Singapore and Canada and also serves as an independent director of XMH Holdings.
On June 29, ayondo chairman and co-founder Thomas Winkler also marginally increased his stake in the stock which now stands at 5.98 per cent.
Between July 2 and 4, GSH Corporation (GSH) executive chairman Sam Goi Seng Hui increased his stake in the property developer. Mr Goi acquired 40,600 shares of GSH, maintaining his direct stake in the stock at 49.96 per cent.
These shares were acquired at an average price of S$0.4528 per share and consideration of S$18,383.
- The writer is the market strategist at Singapore Exchange (SGX). To read SGX's market research reports, visit sgx.com/research.