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Stocks to watch: CapitaLand, Perennial, SPH, Yoma Strategic, Sabana Reit, Datapulse, Global Invacom
THE following companies saw new developments that may affect trading of their shares on Monday:
CapitaLand: The property company has raised US$391.3 million for its first discretionary real estate equity fund, CapitaLand Asia Partners I (CAP I). Investors include institutional investors such as pension funds, insurance companies and financial institutions from Asia and Europe, the real estate group said on Monday. It is the fund's first closing; fundraising commenced nine months before, in July 2018. CAP I will invest in "value-add and transitional" office buildings in Asia’s key gateway cities, specifically Singapore, Beijing, Guangzhou, Shanghai, Shenzhen, Osaka and Tokyo.
Perennial Real Estate Holdings, Singapore Press Holdings: Perennial and its consortium of investors, including Singapore Press Holdings (SPH), are selling their stakes in Chinatown Point Mall for S$520 million. This includes the divestment of their entire interests in the retail mall and four strata office units in Chinatown Point. In July 2010, Perennial syndicated a consortium of investors to form Perennial Chinatown Point LLP (PCP LLP) to acquire Chinatown Point Mall for S$250 million. A major redevelopment exercise costing over S$91 million was also carried out thereafter. On Monday, Perennial said PCP LLP has entered into a share purchase agreement with PAR Chinatown Point, a wholly owned vehicle of a fund managed by Pan Asia Realty Advisors (Singapore), which is a joint venture between Mitsubishi Estate Co and CLSA. The deal value includes S$225 million in cash for the issued shares and the assignment of shareholder loans. Perennial is the largest investor in Chinatown Point Mall with a 50.64 effective interest, and its proportionate stake of the net proceeds is expected to be about S$125.3 million, subject to final adjustments. SPH said it expects its share of gain to be about S$10 million. As at 10.24am on Monday, Perennial shares were trading flat at S$0.635 down 0.8 per cent or 0.5 Singapore cent, while SPH shares were trading flat at S$2.47.
Yoma Strategic: Mainboard-listed Yoma Strategic Holdings on Monday said that Japanese leasing company Tokyo Century Corporation will acquire a 20 per cent stake in its subsidiary Yoma Fleet for S$26.6 million, by way of newly issued shares. Upon satisfaction of certain conditions to complete the subscription of new shares by Tokyo Century, Yoma Strategic will become an 80 per cent shareholder in Yoma Fleet. The Myanmar-focused group said the deal is part of its newly formed strategic partnership with Tokyo Century. Yoma Fleet is one of the largest vehicle lease and rental operators in the South-east Asian country with over 1,100 vehicles and total assets under management of over US$40 million. The additional capital and expertise in non-bank financial services, in particular vehicle leasing, provided by Tokyo Century will enable Yoma Fleet to rapidly expand its vehicle leasing business in Myanmar. As at 10.23am on Monday, the counter was trading at S$0.32, up 1.6 per cent, or 0.5 Singapore cent.
Sabana Shari’ah Compliant Industrial Reit (Sabana Reit): Sabana Reit's distribution per unit (DPU) for the first quarter eased to 0.75 Singapore cent per unit from 0.88 cent a year ago. Gross revenue fell 11.8 per cent year on year to S$18.52 million, partly due to the divestment of its Tai Seng drive property in Q1 2019 as well as lower contribution from properties at 151 Lorong Chuan, 8 Commonwealth Lane and 34 Penjuru Lane. Net property income fell 13.3 per cent to S$12.65 million largely on the back of reduced rental income from lower occupancies, including 151 Lorong Chuan where a “significant tenant” had a planned exit upon their lease expiry in Q1 2019. The amount available for distribution slid 14.6 per cent to S$7.9 million in line with lower revenue and NPI. Units in the Reit closed at 42.5 Singapore cents on Thursday, unchanged.
Datapulse Technology: Datapulse has entered into a settlement with three of its former directors in full and final settlement of their claims in a law suit. Under the settlement, the former directors have agreed to file and serve a notice of discontinuance of the suit within seven days after receipt of payment of the agreed sum. The settlement is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the group for the financial year ending July 31, 2019 as the company had made the relevant provision in relation to their claims in the previous financial year. The provision exceeds the agreed sum. The counter last traded at S$0.255 on April 18, up 4.1 per cent, or one Singapore cent.
Global Invacom Group (GInva): Satellite communications equipment provider GInva and vendor, Tactilis Pte Ltd, have decided to mutually terminate GInva’s proposed acquisition of Tactilis Sdn Bhd. In a filing to the Singapore Exchange on Sunday, GInva said that all fees, costs and expenses relating to the proposed acquisition would be borne equally by itself and the vendor. The break fee of US$20 million under the sale and purchase agreement (SPA) is also being waived. Shares in GInva closed at 4.2 cents on Thursday, down 0.3 cents.