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Stocks to watch: LTC Corp, Keppel, Asti, Alliance Mineral, Perennial, Sinopipe
THE following companies saw new developments which may affect trading of their shares on Monday:
LTC Corporation: A buyout bid of mainboard-listed LTC Corp has been declared unconditional, after regulators green-lit lowering the acceptance threshold from 90 per cent of all shares to 50 per cent, the company said on Monday morning. As at April 6, shares validly tendered in acceptance of the offer amounted to a combined interest of 84.21 per cent - satisfying the reduced acceptance condition that was approved by the Securities Industry Council. The closing date for the offer has been extended to April 25 at 5.30pm - or any later date that the offeror may announce - from Monday evening previously.
Keppel Corporation and KrisEnergy: Mainboard-listed Keppel Corporation said in a Singapore Exchange filing on Monday morning that is has entered into a cooperation agreement to be appointed preferred contractor by upstream oil and gas company KrisEnergy. Keppel, which is a controlling shareholder of KrisEnergy, said the agreement has been signed between its wholly owned subsidiaries, Keppel FELS Limited and Keppel Shipyard Ltd, and KrisEnergy. Under this agreement, Keppel will be the preferred contractor in the "newbuilding, repair, conversion and upgrading of a range of marine assets and/or vessels and the use of Keppel's yard and associated yard services for the construction and refurbishment of facilities".
Asti Holdings and Advanced Systems Automation: Asti-owned Advanced Systems Automation plans to buy a group of companies in the semiconductor sector for S$10 million, the Catalist-listed unit said on Monday. It has entered into a sale and purchase agreement with one Seah Chong Hoe for Yumei Technologies Sdn Bhd, its asset manager Yumei Reit Sdn Bhd, and metal product maker Pioneer Venture Pte Ltd. Mr Seah, the vendor, has undertaken that pre-tax profits of the target companies for financial year 2018 and 2019 is at least S$3 million altogether, according to Advanced Systems Automation, which noted that the acquisition is expected to be earnings-accretive. The target companies' book value and net tangible asset value stood at S$4.07 million as at Feb 28.
Alliance Mineral Assets: The Catalist-listed lithium miner has completed the book building for an underwritten share placement, it said on Monday morning. About 76.52 million such shares, or a 13.8 per cent stake in the company, will go to three sophisticated institutional investors in Australia and Hong Kong at an issue price of S$0.33 apiece, for gross proceeds of A$25 million (S$25.2 million). The issue and allotment is expected to take place on or about May 2, the company said. Trading in these shares will start on May 4 at 9am.
Perennial Real Estate Holdings: Shanghai RST Chinese Medicine Co (Renshoutang), which is 49.9 per cent owned by Perennial, was awarded the contract to operate an integrated eldercare, medical care and rehabilitation care facility in Fengxian District, Shanghai. Expected to open in Q3 2018, the 768-bed Fengxian Second Welfare Home is expected to be the first and largest facility of its kind in Shanghai's Fengxian District. It will also be the first government-built, privately operated facility there. Located at No 89, Wanghe Road, it is situated in a densely populated suburb, about two kilometres from the Fengxian Government's office and well-served by the Shanghai Outer Ring Expressway.
Sinopipe Holdings Limited: It announced late last Friday that it has applied to the Singapore Exchange for an extension of two months to hold its annual general meeting for FY2017, from April 30 to June 30, 2018. It also applied to the Accounting and Corporate Regulatory Authority of Singapore for an extension of time to submit the consolidated financial statements of the group for FY2017. The company said the extension was needed because the group has faced serious financial distress since the group's principal bankers in China withdrew a substantial amount of banking facilities due to a credit crunch, which severely affected the group's operations and caused several subsidiaries in China to close their respective production plants.