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Stocks to watch: Keppel, Blumont, Charisma Energy, Allied Tech
THE following companies saw new developments which may affect trading of their shares on Wednesday:
Keppel Corporation: Keppel has sold its stake in a China marina development for 2.9 billion yuan (S$597 million) and expects to recognise a gain of about S$289 million from the sale. In an exchange filing late on Tuesday night, the company said its unit Keppel Land China has closed the divestment of its stake in Keppel China Marina Holdings. The divestment had been in limbo last year as the project's minority shareholder, Sunsea Yacht Club (Hong Kong) Company, had tried to block the deal.
Blumont Group: Its auditors have highlighted a material uncertainty about the company's ability to remain a going concern, citing a net loss, negative cash flows and net current liabilities for its latest financial year. The group had incurred, for the year ended Dec 31, 2017, a net loss after tax of S$2.6 million, recorded negative cash flows from operating activities of S$2.1 million and net current liabilities of S$5.2 million. Blumont's board said that while a material uncertainty exists, the steps proposed by the management are achievable and believe that the group will be able to raise sufficient funds to fund its operations for the next 12 months.
Charisma Energy: The Catalist-listed group which owns and lease hydropower generation equipment and accommodation modules faces material uncertainty as a going concern, its independent auditors from KPMG stated in a report on the audit of the company's full-year financial statements. Charisma said late Tuesday night that the KPMG auditors drew attention to three matters of material uncertainty reflected in the financial results for the year ended Dec 31, 2017. It incurred a full-year net loss of US$31.36 million and its current liabilities exceed current assets by US$34.81 million as at Dec 31, 2017. The listed group has defaulted on its loan obligations.
Allied Technologies: The Catalist-listed firm will acquire 51 per cent in e-commerce ticketing solution platform Asia Box Office for S$30 million in cash, it announced on Tuesday night after the market had closed. The acquisition will be funded through proceeds gained from the issue and allotment of some 675.16 million placement shares on Oct 31 last year, Allied Tech said, which thereafter will see Asia Box Office become a subsidiary of Allied Tech. Asia Box Office's ticketing platform focuses on sports, entertainment and lifestyle events in South-east Asia and Greater China.