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Stocks to watch: Hotel Properties Limited, Hyflux, SATS
THE following companies made announcements which could affect trading of their shares on Tuesday.
Hotel Properties Limited (HPL): Property firm HPL on Monday said that its associated company plans to buy for an estimated 22.6 million euros (S$35.4 million) the freehold interest of a 740 acre (299 hectare) site in Tuscany, Italy that is occupied by a five-star hotel and a fully consecrated chapel.The final purchase price will be adjusted once the company accounts for the net working capital available in Castello del Nero. The wholly owned unit of Leisure Ventures will also discharge the entire indebtedness of Castello of 16.9 million euros. This purchase by HPL will be funded through loans and internal resources. The site also includes a separate 12 apartment agro-tourism accommodation, vineyards and olive trees producing grapes and olive oil for sale, as well as five additional residences that comes with consent for refurbishment into independent villas.
Hyflux: Water treatment firm Hyflux has sold its 50 per cent stake in a firm that sells bottled drinking water in Indonesia for S$32 million. The sale price reflects a loss of S$300,000 against the net asset value of Hyflux's shareholding in the bottled drinking water firm. The sale of shares held in the firm PT Oasis Waters International was done through Hyflux's consumer products unit, Hyflux Consumer Products. The buyer was an investment company based in Hong Kong. Hyflux Consumer Products will first use about S$13.9 million of the sale proceeds to repay inter-company payments due to a wholly owned subsidiary of Hyflux, and then to Hyflux itself. The remaining sale proceeds will then be used as a subordinated loan from Hyflux Consumer Products to Hyflux, and thereby be channelled for the group's working capital purposes. "The decision was made to undertake the disposal as part of the company’s efforts to streamline its business activities and to re-focus on its core activities in the infrastructure sector," said Hyflux.
SATS: Ground-handling and in-flight catering service provider SATS on Monday said that it will build a central kitchen in Hexiwu Town Food Zone as part of an investment agreement between Tianjin Wuqing Hexiwu Town Government and its unit SATS China. Under the agreement, SATS China will incorporate a subsidiary in Tianjin with a registered capital of 120 million yuan (S$23.7 million) to build and operate a central kitchen on land measuring about 20,000 square metres. The investment is subject to further approvals from the relevant authorities.
The company separately said that it would revise its shareholdings in two China joint ventures (JVs) with indirect wholly owned units of commodities firm Wilmar International, on "mutually beneficial terms". SATS China would take on full control of a 40-60 joint venture (JV) firm - Kunshan FoodCo - held by a unit of Wilmar, and another SATS unit, respectively. To do so, SATS China would buy out the 40 per cent held by Wilmar's unit Yihai Kerry Investments for 80 million yuan, and the other 60 per cent held by SATS Food Services for 120 million yuan. The transactions, done through share transfer agreements, will be paid for through internal resources. At the same time, SATS Food Services would divest its 60 per cent stake in another JV with Wilmar's unit - Langfang FoodCo - to the Wilmar unit for a nominal one yuan. This gives the Wilmar unit full control of Langfang FoodCo. The nominal sale comes as the second JV has not commenced any business operations.