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Stocks to watch: UOB, Singtel, Thomson Medical, SIIC Environment, China Sunsine, Anchor Resources
THE following companies saw new developments that may affect trading of their shares on Wednesday:
United Overseas Bank: UOB has successfully priced the first Panda bond from Singapore, which is also only the second issued from a South-east Asian financial institution. The onshore renminbi bond was priced at 3.49 per cent, one of the lowest rates among all Panda bonds issued to date, UOB said in a regulatory filing on Wednesday. The three-year, two billion yuan (S$404 million) offering garnered a subscription rate of 2.7 times from asset managers and commercial bank investors across Asia, with 38 per cent placed to China's onshore investors and 62 per cent to international offshore investors. UOB shares ended trading on Tuesday up S$0.24 at S$25.04.
Singtel: The telco is skirting closer to a downgrade trigger on its long-term credit rating of "A+", Standard and Poor's (S&P) said in a note on Tuesday - the second such warning from a ratings agency in a week. Its planned investment in the rights issue at debt-hit associate Bharti Airtel, which is expected to add to net debt, "will not materially affect base-case projections", according to S&P Global Ratings, which also reiterated the "A+" rating and its outlook of "stable" for Singtel. But the S&P note also warned that Singtel's operating performance has been "slightly weaker than we expected", thinning the financial headroom needed for the telco to maintain its rating. Singtel shares closed on Tuesday up two Singapore cents at S$2.95.
Thomson Medical Group: It entered into a memorandum of understanding with Brigham Health International and Dana-Farber Cancer Institute last Thursday to explore a potential collaboration. This possible collaboration will support the growth and advancement of Thomson Medical's hospital projects in the region, and promote the advancement of healthcare delivery, education and research with a focus on women's health and oncology. The counter closed 0.1 Singapore cent up at S$ 0.078 on Tuesday.
SIIC Environment: Through its 92.15 per cent-owned subsidiary Shanghai Fudan Water Engineering Technology Co, the company has signed a supplementary agreement with the Shanghai Fengxian Water Authority in China for the Fengxian West Wastewater Treatment Plant project. The project will go through three phases, with each one expected to contribute positively to the group’s performance going forward. Its share closed down 0.5 Singapore cent at S$0.365 on Tuesday.
China Sunsine Chemical Holdings: Its subsidiary on March 8 entered into an investment agreement with the local government of Shanxian County in China to acquire an 800 mu (534,000 sq m) plot of land to carry out an investment project in phases. The project is meant to further expand the wholly owned subsidiary Shandong Sunsine's production capacity in rubber chemical products. The land is located in Shandong Shanxian Chemical Zone. The agreed investment amount is up to 2.5 billion yuan (S$505.2 million), of which 1.5 billion yuan will be invested in property, plant and equipment. The counter closed up three Singapore cents at S$1.14 on Tuesday.
Anchor Resources: The Malaysian goldmine operator is proposing to issue up to S$10 million in unsecured redeemable equity-linked notes, to subscribers Advance Opportunities Fund and Advance Opportunities Fund I, to repay existing bonds when due and to fund working capital. The counter last traded at 2.3 Singapore cents apiece, down 0.2 Singapore cent on Tuesday.
Transcorp Holdings: The company issued a notice of demand to recover S$2.6 million in advance deposits from a supplier last week. On Monday, Transcorp subsidiary Regal Motors received a letter from the supplier stating that the supplier is negotiating with its own suppliers to obtain the refunds, and will propose a schedule of repayment within two weeks, or by March 25. Regal Motors has acceded to the supplier's request and warned the supplier that any further delays beyond March 25 will not be accepted. Transcorp shares closed flat at S$0.005 on Tuesday.