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Stocks to watch: Mercurius Capital, FSL Trust, First Sponsor, Memtech, Low Keng Huat
THE following companies saw new developments that may affect trading of their shares on Monday:
Mercurius Capital Investment: It is proposing to raise S$6 million by placing out shares to 12 individuals, including some existing shareholders. In a Sunday bourse filing, Mercurius said it has entered into conditional agreements to issue and allot 150 million new ordinary shares in the capital of the company at S$0.04 per share. It plans to use S$5.8 million of the S$5.96 million net proceeds for business investments and acquisition and the balance for general working capital. It also on Monday said it is looking to acquire half of a Thai private property developer, Grand Bay Hotel, for more than 310 million baht (S$13.6 million), as well as jointly develop a resort in Phuket, Thailand. Mercurius' shares closed flat at S$0.042 on June 11, before a trading halt was imposed on June 12. The trading halt has been lifted on Monday morning.
FSL Trust: FSL Holdings, FSL Trust's sponsor, has appointed Stirling Coleman Capital Limited as the independent financial adviser (IFA) for its S$0.0585 per unit cash offer for all FSL Trust units. CEL Impetus Corporate Finance, on behalf of FSL Holdings, had first announced the cash offering on June 7. FSL Holdings is making the mandatory offer as, together with its concert party - FSL Trust Management, they hold 877.2 million units representing about 55.04 per cent of issued units as of June 7. FSL Trust's units closed unchanged at S$0.058 on Friday.
First Sponsor Group: The mainboard-listed company has entered into a joint venture agreement with Poly Bay Area Investment Development Co (Poly Bay Area), and Shoucheng Dongguan Real Estate Co (SDRE) to jointly develop three plots of land in Guangdong, China, that was acquired for three billion yuan (S$592 million), the Hong Leong-linked property developer announced on Monday morning. First Sponsor shares closed up 1.59 per cent or S$0.02 at S$1.28 on Friday.
Memtech International: The independent financial adviser (IFA) for the group said that the cash offer of S$1.35 per share by a consortium led by company chairman Chuang Wen Fu to delist the firm is "fair and reasonable". In a circular to the electronics components manufacturer's shareholders, IFA PwC Corporate Finance advised independent directors to recommend that shareholders accept the offer, which they are doing so. Memtech's shares closed flat at S$1.330.
Low Keng Huat: The construction engineering company on Friday posted a net profit of S$450,000 for the first quarter ended Apr 30, down 91 per cent from S$5.17 million a year ago on the back of lower profit from the development segment as there was no project launched for sale in Q1. Revenue fell 88 per cent to S$8.88 million due to the absence of sales from Kismis as the project was fully sold as at June 2018 and there were no sales launched in Q1 FY2020. Its shares closed unchanged at S$0.515 on Friday.