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Stocks to watch: Olam, Isetan, Delong, China Kangda, Star Pharmaceutical
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Olam International: The agri and food giant, together with its unit Olam Treasury, has secured a US$525 million revolving credit facility linked to meeting sustainability key performance indicators (KPI). The facility consists of three tranches: a one-year revolving credit facility (RCF) of US$315 million, a two-year RCF of US$105 million and a three-year RCF of US$105 million. Proceeds from the facility will be applied towards the refinancing of existing loans of Olam and its subsidiaries. Olam shares closed higher at S$1.84 on Tuesday, up two Singapore cents or 1.1 per cent.
Isetan Singapore: The retailer and YTL Starhill Global Reit (SGReit) issued statements to the Singapore Exchange after trading hours on Tuesday, clarifying that no deal has been inked yet. This was in response to an earlier article by The Business Times that SGReit has made an offer to acquire Isetan Singapore’s share of Wisma Atria. Both companies clarified that a non-binding expression of interest from SGReit’s manager has been sent to Isetan Singapore, but no definitive decision has been made. Isetan Singapore on Wednesday morning requested for the lifting of its trade halt. It had earlier halted trading after its shares surged by almost 10 per cent on the back of the news.
Delong Holdings: The voluntary conditional S$7 per share cash offer for Delong Holdings closed on Tuesday, with a total of 108.8 million shares owned by the offeror and its concert parties, representing 98.75 per cent of the total number of shares. The offeror will be exercising its right of compulsory acquisition to acquire the offer shares of dissenting shareholders. Delong has requested that its shares be suspended following the close of the offer with effect from 9am on Wednesday. Its shares last traded on Monday at S$6.98, up one Singapore cent or 0.14 per cent.
China Kangda Food Company: After the close of the mandatory unconditional cash offer by Zenith Hope to acquire the rest of China Kangda Food Company’s shares on Tuesday, the shares owned by the public fell to approximately 23.49 per cent - not satisfying the minimum public float of 25 per cent as per Hong Kong Stock Exchange rules. The dual-listed breeder and seller of livestock, poultry and rabbits said an application for a temporary waiver has been made to the bourse, and Zenith Hope will take appropriate steps to ensure sufficient public float exists in the shares as soon as possible after the offer closes. The counter last traded at S$0.136 on Sept 6, down 0.2 Singapore cent or 1.45 per cent.
Star Pharmaceutical: The independent financial adviser (IFA) of the mainboard-listed company said the offer price of S$0.45 a share is "fair and reasonable". The independent directors agreed with the advice and recommendations of the IFA CEL Impetus Corporate Finance and recommended that shareholders accept the offer. The offer price represents a premium of about 180 per cent, 176 per cent, 187 per cent and 192 per cent over the volume-weighted average price per share for the one-month, three-month, six-month and 12-month periods, respectively. The counter closed flat at S$0.45 on Tuesday.
Trading halt: Ying Li International Real Estate has called for a trading halt pending an announcement.