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Stocks to watch: Frasers Property, Keppel DC Reit, Duty Free, POSH, SembMarine
THE following companies saw new developments that may affect trading of their shares on Thursday:
Frasers Property: Frasers Property Australia and its joint venture partner, Sekisui House Australia, have sold three retail assets in their mixed-use Central Park project for A$174.5 million (S$162.4 million). The three freehold retail assets – Central Park Mall, DUO Retail and Park Lane Retail – have a combined gross leasable area of 14,600 square metres, and are being sold to a consortium comprising Fortius Funds Management, and SC Capital Partners Group, on behalf of its Recap V Fund. Frasers Property shares closed up two Singapore cents, or 1.1 per cent to S$1.76 on Wednesday.
Keppel DC Reit (real estate investment trust): Mainboard-listed Keppel DC Reit has raised S$242.8 million in gross proceeds from its oversubscribed preferential offering, the company announced in a bourse filing on Wednesday. The cash call is part of Keppel DC Reit's move to raise S$478 million via the offering, and a separate private placement to fund its acquisition of two data centres in Singapore later this year. Some 142 million new units will be issued under the offering at an issue price of S$1.71 per unit. The new units are expected to be listed on the SGX on Oct 15. Units of Keppel DC Reit last traded at S$1.98 on Wednesday, up five cents.
Duty Free International (DFI): Mainboard-listed DFI suffered a 60 per cent fall in earnings to RM4.9 million (S$1.6 million) for its fiscal second quarter ended August, hit by a narrower profit margin and lower net gain in foreign exchange. This translates to an earnings per share of 0.41 sen for the quarter, compared to 1.02 sen previously. Nevertheless, DFI has declared an interim dividend of 0.5 Singapore cent per share. It did not declare a corresponding dividend last year. Revenue for the quarter was largely flat at RM114.7 million, up 0.2 per cent on year due to contributions from Brand Connect Group which DFI acquired in August 2018. As at end-August, DFI has cash of RM297.2 million and RM32.3 million in debt. Shares of the company closed flat at 15.2 Singapore cents on Wednesday.
PACC Offshore Services Holdings (POSH), Sembcorp Marine (SembMarine): Mainboard-listed POSH has agreed to acquire the 50 per cent stake held by SembMarine in harbour services provider Pacific Workboats (PWPL) for over US$679,400 in cash. PWPL is currently a 50:50 joint venture between POSH and Dolphin Shipping Co, a unit of SembMarine. Post-acquisition, POSH will continue to offer harbour services in Singapore independently, while redeploying select assets from PWPL for longer-term charters overseas. For the acquisition to proceed, PWPL will first have to distribute US$34 million worth of dividends each to POSH and Dolphin, primarily in the form of vessels. POSH shares closed at 9.8 Singapore cents on Wednesday, down 0.1 cent, while SembMarine shares fell one cent to close at S$1.19.
Fortress Minerals: Catalist-listed Fortress Minerals saw earnings double to US$2.5 million for Q2 FY2020 ended August, bolstered by a higher sales volume, and selling price of its high-grade iron ore. The company recorded earnings per share of 0.50 US cent for the quarter, compared to 0.29 US cent a year ago. Revenue for Q2 was up 18.4 per cent on year to US$7.78 million. Shares of Fortress Minerals closed flat at 21 Singapore cents on Wednesday, slightly above the 20 Singapore cents offer price of the stock, which listed in March.
Ellipsiz, Lum Chang Holdings: Super Makmur Sejahtera, a joint venture between mainboard-listed Ellipsiz and Lum Chang Holdings, has purchased 580,000 square metres of land on Bintan island for S$4.8 million in cash, the companies announced in bourse filings on Wednesday. Ellipsiz owns 75 per cent of Super Makmur via its wholly-owned subsidiary Cyan Bay. The remaining 25 per cent is held by Lum Chang via its wholly-owned unit Bluesky Real Estate Investment. Shares of Ellipsiz closed flat at 41 Singapore cents on Wednesday, while shares of Lum Chang ended down one cent to 34 Singapore cents. Both counteres were trading on a cum-dividend basis.
Zico Holdings: Catalist-listed Zico Holdings has agreed to sell two of its corporate services subsidiaries to Mune Investments for at least US$3.9 million in cash, the company announced in a bourse filing on Wednesday. Additional consideration of over US$988,000 may be payable if the shares are sold at a certain price range. This would translate to net proceeds of between RM16.3 million (S$5.4 million) and RM19 million for Zico. Shares of Zico closed flat at 13.3 Singapore cents on Wednesday.