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Stocks to watch: Datapulse, Cache Logistics Trust, RHT Health Trust, Procurri, DeClout, LMIR Trust
THE following companies saw new developments which may affect trading of their shares on Thursday:
Datapulse Technology: It will expand its recently acquired hair care product manufacturer into the distribution business, chief executive Wilson Teng said on Thursday as that business and his directorship are being challenged by a bloc of minority shareholders. Wayco Manufacturing (M) Sdn Bhd, which Datapulse acquired in December 2017 for S$3.43 million, currently produces six core brands of hair care products that are distributed in Singapore and Malaysia. Datapulse is primarily a disk drive maker. A strategic review by Ernst & Young that was disclosed in March found that Wayco was not a sustainable business, although it had "the potential to improve its business viability by transforming its business into a value chain play by developing its distribution capability and its suite of brand assets and products".
Cache Logistics Trust: The Reit will convert its CWT Commodity Hub property from a master lease to a multi-tenancy lease structure from Thursday. Daniel Cerf, the chief executive officer of the Reit manager, said that CWT, which provides logistics services and is the Reit's sponsor, will continue to lease approximately 61 per cent of the premises. Mr Cerf said: "Together with the existing end-users who have committed to leases directly with Cache, the retention rate per lettable area is 86 per cent, including leases secured through joint marketing efforts with CWT."
RHT Health Trust: The Reit's manager is asking holders of S$120 million of 4.5 per cent notes due July 2018 to approve a sale of assets to Fortis Healthcare and a six-month extension of the maturity date. As part of the consent solicitation, the trust manager is also asking bondholders to extend the maturity date on the notes by six months, to January 2019. The redemption amount at maturity will however be raised to 100.45 per cent of the principal amount. The trust manager is also seeking to introduce a mandatory redemption event that will allow the issuer to redeem all the notes within 21 days of the completion of the sale to Fortis.
Procurri Corporation and DeClout Limited: Technology firm DeClout has taken a S$10 million loan that is pledged against its full stake in its mainboard-listed unit Procurri, it said on Wednesday. The loss-making firm said it has taken up a two-year loan from a group of six private investors. The loan bears an interest rate of 8 per cent per annum. The loan is secured against DeClout's entire share interest in Procurri. This stands at 46.8 per cent, or some 132 million shares of Procurri, which makes data centre IT equipment. The loan is also secured against corporate guarantees by two other subsidiaries of DeClout.
Lippo Malls Indonesia Retail Trust (LMIR Trust): The manager of LMIR Trust on Wednesday said the latest withholding tax laws in Indonesia may have a "material impact" on the trust. It said the Indonesian government had earlier this year passed certain amendments to tax rules relating to land use and building leases in the country. Under the new rules, all income earned from building leases in Indonesia will be hit by an income tax at 10 per cent of the total value of the building lease that now includes service charges and utilities recovery charges. This tax treatment also applies to land.