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Stocks to watch: The Hour Glass, Koufu, Asian Healthcare Specialists, ST Group, HMI
THE following companies saw new developments that may affect trading of their shares on Friday:
The Hour Glass: The Hour Glass's Australian subsidiary has entered into a sale-and-purchase agreement with 190 Edward St (as trustee for BAMPS Trust) to acquire a freehold property in Brisbane, Australia, for A$32 million (S$30.5 million). The property is an eight-storey retail and commercial office building sitting on a site area of about 455 square metres within the main luxury retail precinct in Brisbane's central business district. The purchase will be funded by internal resources and bank borrowings, the company said. The Hour Glass shares closed at S$0.825 on Thursday, up 3.8 per cent, or three Singapore cents.
Koufu Group: A subsidiary of food court operator Koufu Group has entered into a joint-venture (JV) agreement to expand the Supertea and R&B Tea brands into Indonesia. The group will have a stake of 32.4 per cent in the JV through its subsidiary, Super Tea, which will hold a 54 per cent interest in the JV. The remaining shares will be held by its partners, including A&O Assets and Chan Bee Kiew, who hold 40 per cent and 6 per cent respectively. The JV is to be incorporated in Indonesia, with an initial issued paid-up share capital of S$1 million. Shares in Koufu closed at 75.5 Singapore cents on Thursday, up 1.5 cents.
Asian Healthcare Specialists (AHS): Catalist-listed AHS on Friday said it has entered into a term sheet to acquire 51 per cent of Cornerstone Asia Health, a provider of healthcare services across various specialisations. The cost of acquisition is estimated to be 13 times the profit after tax for Cornerstone Asia's fiscal year ended June 30, 2019. This will be satisfied by S$5 million in cash, and the issue of shares in AHS at S$0.26 apiece. This is a 1.4 per cent discount to the volume-weighted average price of AHS shares at S$0.2637 for trades completed on July 4, the day prior to the signing of the term sheet. AHS shares closed at S$0.26 on Thursday, down 0.5 Singapore cent or 1.9 per cent.
ST Group Food Industries Holdings: Newly-listed food and beverage franchisee ST Group has secured exclusive rights to the NeNe Chicken brand in New Zealand, it said in a bourse filing on Thursday evening. ST Group entered into a master franchise agreement with Hyein Foods for the exclusive rights to the South Korean fried-chicken restaurant franchise. The agreement is for an initial term of 10 years, with an option to renew for a further 10 years. The deal comes just one day after ST Group's debut on the Singapore Exchange's Catalist board. Shares in ST Group closed at S$0.275 on Thursday, down 1.8 per cent, or 0.5 Singapore cent.
Trading halt: Mainboard-listed Health Management International (HMI) on Friday morning requested a trading halt, pending the release of an announcement. The healthcare provider's latest bourse filing was made on June 17, announcing that it was in talks with a third party for a possible transaction involving shares of HMI. The counter ended trading on Thursday at S$0.66, up 0.5 Singapore cents or 0.763 per cent.