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Stocks to watch: StarHub, OUE C-Reit, OUE H-Trust, Sunpower, ISEC Healthcare
THE following companies saw new developments that may affect trading of their shares on Tuesday:
StarHub: Local telco StarHub announced on Monday that it has signed a memorandum of understanding with three leading Internet service providers (ISPs) in China to co-build data links between Singapore and Chongqing in a joint initiative. Under the agreement signed with China Mobile, China Unicom and China Telecom, at the Smart China Expo 2019 event, the initiative will provide Singapore companies operating in Chongqing with direct data connectivity back to Singapore via L2VPN, a corporate international data service provided over submarine and/or terrestrial transmission infrastructure. StarHub shares closed at S$1.34 on Monday, down 2.2 per cent, or three Singapore cents.
OUE Commercial Real Estate Investment Trust (C-Reit), OUE Hospitality Trust (H-Trust): The court has sanctioned the proposed merger of OUE C-Reit and OUE H-Trust, which will take place via a trust scheme of arrangement. The trust managers have also provided an updated indicative timetable for the merger with the dates brought forward, in separate bourse filings on Monday evening after market close. Under the updated timetable, the books closure date for both C-Reit and H-Trust will be at 5pm on Sept 3, while the trust scheme is expected to be effective Sept 4.
The last day of trading of H-Trust stapled securities on the Singapore Exchange will be Aug 30, with trading to be suspended from 9am on Sept 2. For C-Reit units, the last day of trading on a cum-distribution basis will be Aug 30, while the first day of trading on an ex-distribution basis will be Sept 2. H-Trust stapled securities are expected to be delisted on Sept 17. Under the proposed scheme, C-Reit will acquire H-Trust by paying the latter's holders, for every H-Trust stapled security, 4.075 Singapore cents in cash, plus 1.3583 new C-Reit units. On Monday before the announcements were filed, OUE C-Reit units closed down one Singapore cent or 1.91 per cents at 51.5 cents, while OUE H-Trust stapled securities ended down 0.5 Singapore cent or 0.69 per cent at 72.5 cents.
Sunpower Group: Environmental solutions company Sunpower Group has secured 65.5 million yuan (S$12.7 million) in manufacturing and services (M&S) contracts with PSS Netherlands BV, a joint venture company of three repeat customers. The group said in a Singapore Exchange filing on Monday that the contracts involve supplying heat exchangers to PSS Netherlands' Sriracha oil refinery in Thailand. The contracts are due for delivery in 2020, and are expected to have a positive impact on the group's financial performance for FY2019 and FY2020. The counter closed at 44 Singapore cents on Monday, down 2.2 per cent, or one cent.
ISEC Healthcare: Catalist-listed ISEC Healthcare said on Monday evening that Aier Eye International has agreed to buy about 186.3 million ISEC Healthcare shares in a sale and purchase agreement which, when completed, will trigger a mandatory general offer for the remaining shares at the same price. Aier Eye International, a direct wholly owned subsidiary of Aier Eye Hospital Group which is incorporated in China, on Monday entered into the conditional sale and purchase agreement to purchase the shares at 36 Singapore cents each in a deal valued at S$67.1 million. Aier Eye International cited ISEC Healthcare's low historical trading liquidity as a reason for the offer. The offer price is a 5.88 per cent premium over the closing price of 34 Singapore cents on June 28, the last trading day before a trading halt was called. Shares in ISEC Healthcare closed at 33 cents on Monday, up 1.5 per cent, or 0.5 cent.
Aspen (Group) Holdings: A subsidiary of Malaysia developer Aspen (Group) Holdings is investing RM5 million (S$1.7 million) in online food delivery platform Delivereat, the group said in a Singapore Exchange filing on Monday. The group's wholly owned subsidiary Aspen Vision All (AV All) has entered into a subscription agreement for 138,750 convertible preference shares in Delivereat, with a tenure of five years. AV All will pay Delivereat the subscription price in two tranches of RM2.5 million each, subject to conditions including Delivereat achieving an agreed revenue milestone within 18 months from the date of the subscription agreement. The investment will be funded using internal resources. Aspen shares last traded at 12.5 Singapore cents on July 29, up 4.2 per cent, or 0.5 cent.