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Stocks to watch: Frasers Property, ST Engineering, Cache Logistics Trust, Challenger, BM Mobility
THE following companies saw new developments that may affect trading of their shares on Thursday:
Frasers Property: Frasers Property, through its wholly-owned subsidiary Frasers Property Investments (Bermuda), is acquiring a 29.99 per cent stake in PGIM Real Estate AsiaRetail Fund for around S$601.5 million. Meanwhile, Frasers Centrepoint Trust, a real estate investment trust it sponsors, is increasing its stake in the fund from approximately 17.13 per cent to 18.8 per cent. The transaction price is around $33.5 million. Shares of Frasers Property closed at S$1.76 apiece on Wednesday, up 1.2 per cent, or two Singapore cents.
ST Engineering: ST Engineering and China electric-vehicle maker BYD have signed a memorandum of understanding (MOU) to develop autonomous bus platforms, as part of the former's plans to form a consortium in response to the call for collaboration by the Land Transport Authority and the Singapore Economic Development Board. Announcing the MOU on Wednesday, ST Engineering said the move expands its land system arm's portfolio of autonomous bus platforms to include BYD's electric buses. The ST Engineering autonomous vehicle kit will be integrated onto the BYD buses, and the partners will look at marketing the joint platform internationally. ST Engineering shares closed down three Singapore cents or 0.79 per cent at S$3.76 on Wednesday.
Cache Logistics Trust: The trust is proposing to acquire a single-storey logistics warehouse and office facility in Victoria, Australia for A$41.2 million (S$39.5 million), with an initial property yield of 6.8 per cent, the Reit's manager announced on Wednesday. The acquisition will be Cache's largest warehouse to date, with a land area of 83,020 square metres and a net lettable area of 37,853 sq m. It is located in the industrial suburb of Altona, close to main arterial roadways, the Port of Melbourne and Melbourne's central business district. The property is currently 76 per cent anchored by a Melbourne-based transport and logistics company, specialising in container transport services in Melbourne metropolitan and regional areas. The weighted average to lease to expiry is 2.53 years. The lease structure includes a fixed rental escalation of 3.25 per cent per annum, as well as recovery of land tax and all property outgoings. Cache Logistics Trust units closed unchanged at 72.5 Singapore cents on Wednesday before the announcement.
Challenger Technologies: Challenger announced Wednesday that it intends to delist, with Digileap Capital making a cash exit offer for all of the electronic retailer's shares at an exit offer price of S$0.56 per share. The offeror is a partnership between the Loo family and Dymon Asia Private Equity, via Dymon Asia Private Equity (SE Asia) Fund II. The proposed voluntary delisting is conditional on the Singapore Exchange's approval of Challenger's application, and a resolution being passed at an extraordinary general meeting. If the latter resolution is passed, Challenger will be delisted irrespective of the number of acceptances received for the exit offer. Four members of the Loo family, including Challenger chief executive officer Loo Leong Thye and Ng Leong Hai, who together hold 78.64 per cent of the total shares, have provided undertakings to vote in favour of the delisting resolution and accept the exit offer. The counter last traded at S$0.53 apiece on March 15, down 0.9 per cent, or one Singapore cent.
BM Mobility: Mainboard-listed BM Mobility is in the process of raising funds for its green energy business in Malaysia, which involves electric scooter sharing, it announced on Wednesday after market close. The group has been focusing on expanding its core business of green energy in the region since obtaining shareholders' approval in a January2018 extraordinary general meeting. BM Mobility said it "is in active discussion with several interested investors" to raise US$500,000 in the form of redeemable notes through its wholly-owned unit BM Mobility Sdn Bhd (BMMSB) to fund the expansion of its electric scooter sharing business. The funds will be raised in stages. Investors will have the option of converting the notes into BMMSB shares. Assuming all US$500,000 of the notes are converted, this will amount to 9.09 per cent of BMMSB's enlarged share capital.