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Stocks to watch: Raffles United, Sunrise Shares, Duty Free International, Cityneon
THE following companies saw new developments that may affect trading of their shares on Thursday:
Raffles United Holdings: Bearings and seals supplier Raffles United Holdings announced on Wednesday after trading hours that it is proposing to undertake a renounceable non-underwritten rights issue of up to 234 million new rights shares at an issue price of S$0.05 for each rights share, on the basis of one rights share for every one existing share. The issue price represents a discount of about 39 per cent to the closing market price of S$0.082 for trades done on the Singapore Exchange on Jan 8, the last trading day before the announcement.
Sunrise Shares Holdings: The independent financial advisers (IFA) of Sunrise Shares Holdings said on Wednesday that the S$0.017 per share general offer for the company made by its largest shareholder, Hong Kong-based businessman Wong Siu Fai, is “not fair and not reasonable”, according to a circular sent to shareholders of the firm. The directors concurred with the advice of the IFA Novus Corporate Finance regarding the offer, and has recommended that shareholders reject the offer. Mr Wong had acquired a majority stake in Quality Able, which holds a 4.49 per cent stake in Sunrise. That pushed Mr Wong’s direct and deemed stake, which was 29.73 before his acquisition, to 34.22 per cent, making it mandatory for him to make a general offer for the rest of the company’s shares. Shares in the company last closed flat at S$0.017 on Jan 7.
Duty Free International: Malaysian multi-channel duty free and duty paid retail group Duty Free International posted a net profit of RM15.2 million (S$5 million) for its third quarter ended Nov 30, 2018, up from RM3.3 million previously on the back of foreign exchange gains compared to previous losses, as well as an increase in revenue. Revenue of RM157 million was recorded for the quarter, up 19.3 per cent mainly due to an increase in demand for certain products and the sales mix. Earnings per share for the quarter stood at 1.26 sen, up from 0.27 sen previously. The company has also declared a second interim dividend of S$0.01 per share for Q3 2019, which will bring the dividend per share amount declared to date to a total of S$0.018 per share. Its shares closed down S$0.002 at S$0.192 on Jan 9.
Cityneon Holdings: The buyout offer for Cityneon Holdings closed on Jan 9 at 5.30pm, with the total number of shares acquired by offeror West Knighton Limited – a special purpose vehicle indirectly owned by Cityneon group chief executive Ron Tan and Hong Kong entrepreneur and investor Johnson Ko Chun Shun – representing about 99 per cent. West Knighton intends to exercise its right to compulsorily acquire all the shares of the dissenting shareholders at an offer price of S$1.30 per share in cash on or after Feb 5. With the offeror acquiring more than 90 per cent of the shares, trading in Cityneon will be suspended as it no longer meets the free float requirement by the Singapore Exchange. Cityneon Holdings shares last closed at S$1.29 on Jan 8, down one cent from its opening.