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Stocks to watch: Keppel, Raffles Medical, China Fishery
MERGERS and acquisitions were in the news before the market's opening on Monday.
Keppel Corp is buying the owner of the established LeTourneau jackup rig designs from Cameron International Corp for US$100 million in cash, the rigbuilder announced early Monday.
Keppel's wholly owned Keppel Offshore & Marine USA, Inc unit will fund the purchase of the offshore rigs business of Cameron with internal working capital.
The acquisition will give Keppel ownership of the LeTourneau suite of jackup rig designs as well as rig kits and support equipment that will allow the group to offer new rigs for customers and also provide aftermarket services, Keppel said. There are about 100 LeTourneau rigs currently operating around the world.
Keppel shares closed at S$7.04 on Friday.
Raffles Medical Group is buying a chain of 10 clinics in China, Vietnam and Cambodia for US$24.5 million in cash, the hospital and clinic operator announced early Monday.
The purchase of privately held International SOS (MC Holdings) will be internally funded.
The target company had net tangible asset value of about US$5.3 million as at June 30, 2015, and book value of US$5.4 million.
Shares of Raffles Medical last traded at S$4.35 before the weekend.
The Carlyle Group has ended its presence on the board of China Fishery Group almost four months after declining to take part in a rights issue by the fishing company, China Fishery announced Monday morning.
Patrick Siewert, a board appointee of Carlyle fund CAP III-A, resigned as a non-executive director of China Fishery on Aug 29. His alternate, Janine Feng Junyuan, also stepped down.
Mr Siewert cited competing time commitments as well as CAP III-A's reduced shareholding in China Fishery for his resignation, China Fishery said. The fund did not take part in an April rights issue, diluting its stake to 6.16 per cent from 11.09 per cent.
Shares of China Fishery and its parent, Pacific Andes International Holdings, have come under pressure since Aug 21 after the companies said that they were being investigated by regulators in Singapore and Hong Kong.
China Fishery shares closed at 5.9 Singapore cents on Friday.