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Stocks to watch: Sembcorp, Chip Eng Seng, BreadTalk, Lendlease Global Commercial Reit
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Sembcorp Industries, Chip Eng Seng: Sembcorp Industries has inked an agreement to sell its commercial construction business to Chip Eng Seng Corporation for about S$49.9 million, both mainboard-listed firms announced on Wednesday. The divestment is part of Sembcorp's strategy to unlock value and recycle capital as it repositions itself as a global energy player, the company said. Shares in Sembcorp Industries closed at S$2.13 on Tuesday, up 2.4 per cent or five Singapore cents, while Chip Eng Seng shares closed up 0.8 per cent, or 0.5 cent to 63 cents.
BreadTalk Group: BreadTalk founder George Quek's acquisition of a stake in Taiwan's Pacific Sogo Department Stores will not give him and his business partner management and controlling rights, Sogo holding company Pacific Distribution Investment Company said in a media statement on Tuesday night. Mr Quek had previously told media that he and long-time business partner Weng Chun-chih, via Singapore-incorporated company Clover Private Ltd, had entered into a deal with Taiwanese businessman Lee Heng-lung to acquire the bulk of the latter's claimed 60 per cent stake in Pacific Distribution. However, Pacific Distribution disputed this. It said Mr Lee's equity holding only accounts for 0.15 per cent of Pacific Distribution, and is insufficient to cause management change at Far Eastern Sogo Department Store Company. BreadTalk shares closed at 62.5 Singapore cents on Tuesday, up 0.8 per cent or 0.5 cent, before the release of this announcement.
Tai Sin Electric: Mainboard-listed Tai Sin Electric has entered into a subscription agreement for a 40 per cent stake in Indonesian firm PT Elmecon Multikencana for an aggregate consideration of S$500,000, it announced on Tuesday night. The deal was made via Tai Sin unit Lim Kim Hai Electric Co (LKHE). The consideration is funded from LKHE's internal resources. Tai Sin Electric shares closed flat at 34 Singapore cents on Tuesday.
Lendlease Global Commercial Reit: Lendlease Global Commercial Reit's (real estate investment trust) initial public offering has ended with its public offering 14.5 times subscribed, the Reit's manager announced on Tuesday night. Its units are expected to start trading on the Singapore Exchange's main board at 2pm on Oct 2. Lendlease had offered 387.5 million units at 88 Singapore cents each. Of this, 22.7 million units were offered to the public, with 13,640 valid applications for 330.4 million units received. Separately, 13 cornerstone investors have also subscribed for a total of 453.8 million units. A total of 1.17 billion units were issued, raising gross proceeds of S$1.03 billion.
VibroPower Corporation: Watch-listed VibroPower Corporation is looking to issue up to S$1.8 million worth of shares and warrants on a renounceable, non-underwritten basis, to fund the expansion of its businesses, it said in a filing late on Tuesday night. Under the proposed rights cum warrants issue, for every two existing ordinary Vibropower shares held, entitled shareholders will be offered one rights share, plus one free detachable and transferable warrant. VibroPower shares last traded at 11.2 Singapore cents on Aug 26, down 2.6 per cent, or 0.3 cent.