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Stocks to watch: China Merchants, Vallianz Holdings, Vard Holdings
China Merchants: Toll road operator China Merchants has become the latest privatisation target on the Singapore bourse.
Easton Overseas Ltd, an indirectly wholly owned unit of China Merchants, on Monday said that it is planning to make a voluntary conditional cash offer for the shares that it does not already own in China Merchants at S$1.02 a piece.
Easton already owns 75.88 per cent of China Merchants. This values the company at about S$1.8 billion.
The offer will be extended on the same terms to shares issued or to be issued under the company's options and convertible bonds.
Vallianz Holdings: The vessel provider on Monday reported a 1.6 per cent drop in net profit to US$4.9 million, while revenue fell 18.8 per cent to US$49.3 million in its first quarter ended March 31, 2016.
The group said that the lower revenue was due to the absence of contributions from ship management projects in Latin America which were completed in late 2015; the renewal of certain existing contracts with a customer in the Middle East in July 2015 at lower average charter rates; and a change in the revenue mix of the chartering and brokerage services business.
Separately, the company also said that it has been awarded a time charter contract valued at up to US$63 million for the supply of two offshore support vessels to a national oil company in the Middle East.
Vard Holdings: Shipbuilder Vard Holdings on Monday said that it has been notified that Harkand Group has entered into administration - which is a procedure under insolvency laws in some jurisdictions.
Harkand has one diving support and construction vessel under construction at Vard, originally contracted in December 2013 for delivery in Q2 2016. The vessel is in an advanced stage of construction.
Vard said: "The company is currently evaluating its position towards Harkand. If the shipbuilding contract is unlawfully terminated by the customer, Vard will contractually be entitled to retain the advance payments already received, equivalent to 20 per cent of the original contract price, and to resell the vessel."