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Stocks to watch: GLP, Sembcorp Marine, KOP, Noble, Keppel Corp, SPH Reit
Global Logistic Properties (GLP): GLP and its offeror are aiming to take the company private by April 14, 2018 after receiving in-principle approval from the Singapore Exchange (SGX). Offeror Nesta Investment Holdings is a wholly owned subsidiary of Nesta Investment Holdings MidCo Limited, which is owned by a group comprising Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke Group. GLP chief executive Ming Z Mei is also a director of Nesta. Both companies intend to dispatch the scheme document by Dec 1, 2017; if the scheme is successful, shareholders will receive S$3.38 in cash per share and GLP will be delisted from the SGX.
Sembcorp Marine (SembMarine): SembMarine is selling nine jackup drilling rigs to Borr Drilling for US$1.3 billion. The sale, carried out by SembMarine's wholly owned subsidiary PPL Shipyard, will also include a market-based fee, which is calculated based on an uplift in value of the rigs sold. The nine Pacific Class 400 rigs comprise six rigs from contracts that had been terminated with original customers and three rigs under various stages of construction completion. Excluding all interest and the market fee payable by Borr Drilling, this transaction will result in a loss of about S$15 million, but will "significantly improve the liquidity position of the company", SembMarine said.
KOP: Real estate, hospitality and entertainment group KOP announced last week that it had entered into a placement agreement with businessman Sam Goi Seng Hui, where Mr Goi will subscribe for up to around 221.59 million new ordinary shares at a placement price of S$0.05 each, raising up to S$11.08 million for KOP. The placement price represents a discount of about 4.76 per cent to the volume weighted average price of S$0.0526 as at Oct 5. Upon completion of the proposed placement, it will represent 20 per cent of the enlarged share capital of KOP.
Noble Group: The group will announce the consideration paid by Mercuria Energy America Inc (MEC) for its unit, Noble Americas Gas & Power Corp (NAGP), upon the final determination of the closing date net working capital, it said in a release to the SGX on Monday morning. On Oct 2, Noble's subsidiary, Noble Americas Corp, announced it had completed the sale of NAGP, to MEC; MEC paid the closing amount of US$102 million. The difference in the closing amount and the illustrative amount listed in an earlier circuliar was partly due to a decrease in NAGP's working capital between March 31, June 30 and Sept 30 this year, Noble explained in response to queries from the bourse. The sum of US$102 million was derived from subtracting US$65 million from the estimated closing date net working capital of approximately US$249 million. Another US$83 million was deposited with the escrow agent.
Keppel Corp: Keppel has received an eligibility to list letter from the SGX for the proposed initial public offering of a US commercial real estate investment trust (Reit) on the mainboard. Keppel said no decision has been made on whether the proposed Keppel-KBS US Reit will take place. However, Keppel on Friday agreed to take a 50 per cent interest in the proposed Reit manager, Keppel-KBS US Reit Management, for US$27.5 million. The other 50 per cent owner of the manager, KBS Pacific Advisors, is also the vendor of the properties forming the Reit's initial portfolio. KBS will jointly sponsor the Reit with Keppel's wholly owned subsidiary, Keppel Capital.
SPH Reit: SPH Reit is due to release its fourth quarter and full year results on Monday.