Stocks to watch: Sats, Sembcorp

THE following companies saw new developments that may affect trading of their securities on Tuesday (Nov 26):

Sats : The in-flight caterer and ground handler intends to divest 49 per cent of its interest in its Saudi Arabia cargo-handling subsidiary for S$52.6 million to a private limited company incorporated in the kingdom. Sats will continue to hold 51 per cent of the issued share capital of the unit following the restructuring, with the remaining 49 per cent acquired by Avilog Logistics Services – which is owned by a consortium of shareholders Albawardi Holding Group and Abdulkadir Al Muhaidib and Sons. Shares of Sats closed on Monday at S$3.86, up S$0.02 or 0.5 per cent, before the announcement.

Sembcorp Industries : The group was awarded a 300 megawatt wind-solar hybrid power project from NTPC, India’s state-run power producer. Upon completion and subject to a power purchase agreement, Sembcorp will sell power output from the build-own-operate project to NTPC under a 25-year contract. The company said on Tuesday that the project, which will be funded through internal funds and debt, will not have material impact on its earnings per share or net tangible assets per share for the financial year ending Dec 31. The counter closed on Monday down 0.4 per cent or S$0.02 at S$5.23.