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Stocks to watch: Singtel, OUE C-Reit, OUE H-Trust, Del Monte, Soilbuild Reit
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Singtel: Singtel has closed the order book for its US$750 million of 10-year notes after the issue was 3.6 times oversubscribed by investors, and received interest of about US$2.7 billion, the telecommunications group said on Wednesday. The notes, issued by unit Singtel Group Treasury (SGT), will carry a coupon of 2.375 per cent per annum and mature in 2029. The notes are drawn down under SGT's S$10 billion Euro Medium Term Note Programme guaranteed by Singtel. The group added that the notes had attracted "strong demand" from a wide range of high quality investors. Net proceeds from the issue will be used by SGT to fund Singtel's ordinary course of business. Singtel shares closed at S$3.22 on Tuesday, up three Singapore cents or 0.94 per cent.
OUE Commercial Real Estate Investment Trust (C-Reit), OUE Hospitality Trust (H-Trust): An Aug 26 court hearing has been scheduled to sanction the proposed merger of OUE C-Reit and OUE H-Trust, following which the trust managers will provide an updated indicated timetable for the merger. In an earlier indicative timeline, the court hearing had initially been expected to take place on Sept 5, with the expected last day of trading for H-Trust's stapled securities to be Sept 12.
Under the proposed scheme, OUE C-Reit will acquire OUE H-Trust by paying the latter's holders, for every H-Trust stapled security held, 4.075 Singapore cents in cash plus 1.3583 new OUE C-Reit units. Holders of both trusts had approved the merger, to take place via a trust scheme of arrangement, at separate meetings on Aug 14. On Tuesday, OUE H-Trust units closed down 0.5 Singapore cent or 0.69 per cent at S$0.72, while OUE C-Reit units closed unchanged at S$0.515.
Del Monte Pacific: Food and beverage firm Del Monte Pacific will close two US production facilities and sell a third in a bid to move to an asset-light strategy, it said in a bourse filing on Tuesday night. Owned by its US subsidiary Del Monte Foods, the two facilities to be closed are located at Sleepy Eye, Minnesota and Mendota, Illinois while the third one in Cambria, Wisconsin will be sold as an operating facility. The company will also be selling manufacturing assets at its Crystal City, Texas facility and will transfer production at this site to outside locations later this year. Production at all four locations will be switched to other Del Monte production facilities in the US, the company said. The counter closed down 1.5 Singapore cent, or 9.7 per cent to 13.9 cents on Tuesday.
Soilbuild Business Space Reit (Soilbuild Reit): Soilbuild Business Space Reit tenant NK Ingredients, which owes almost S$3.4 million to the real estate investment trust, has been put under judicial management, said the Reit's manager in a filing on Tuesday. The property in question is located at 2, Pioneer Sector 1. As at Aug 20, NK Ingredients owes about S$3.39 million to Soilbuild Reit, including August 2019 rental charges, property tax and land rent. This has exceeded the security deposit by about S$835,000. Units in Soilbuild Reit closed at 57.5 Singapore cents on Tuesday, down 0.9 per cent or 0.5 cent.
Noel Gifts International: Mainboard-listed Noel Gifts has warned of an expected loss for the financial year ended June 30, based on the preliminary review of its unaudited consolidated financial results. The expected net loss is attributable to the write-down in valuation of its industrial investment property, the company said in an exchange filing on Tuesday. It is scheduled to announce its unaudited financial results for the year on Aug 27. Noel Gifts shares closed unchanged at 19.4 Singapore cents on Tuesday before the announcement.