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Stocks to watch: Wilmar, United Engineers, HMI, Spackman, SPH, Yoma, AusGroup
THE following companies saw new developments that may affect trading of their shares on Monday:
Wilmar International: The mainboard-listed company said on Friday night that the China Securities Regulatory Commission has accepted Yihai Kerry Arawana Holdings' application to list on the Shenzhen Stock Exchange. The listing, if approved by the Chinese regulator, will see Yihai issuing new shares amounting to about 10 per cent of its total pro forma share capital after the initial public offering (IPO). Wilmar will retain majority control in Yihai with an expected 89.99 per cent stake post-IPO. Wilmar shares closed 1.08 per cent higher at S$3.76 on Friday before the announcement.
United Engineers: The property development and engineering group on Friday said that its subsidiary, WBL Corporation, had no part in sourcing or selecting any of the end placees in the recent share sale that drew concerns from shareholder Oxley. In Friday's exchange filing, UE stressed that the shares were sold to independent unrelated third parties. Shares of UE closed down 0.38 per cent at S$2.61 on Friday before the announcement.
Health Management International: The healthcare player has appointed Ernst & Young Corporate Finance as the independent financial adviser for the deal to take the company private. Led by HMI's management and private equity firm EQT, the bid in July to privatise HMI by way of a scheme of arrangement values the company at S$611 million. Minorities can either accept S$0.73 in cash for each HMI share, or swap them for new shares in the offeror, issued at S$0.73 per share. Shares of HMI had rallied after the offer was announced. The counter closed unchanged on Friday at S$0.715 before the announcement.
Spackman Entertainment Group: The Catalist-listed film producer and investor is looking to buy the entire stake in South Korean film production firm, Simplex Films, for S$3.3 million in new shares. The proposed acquisition will expand Spackman’s annual film production capacity and have a positive contribution within this fiscal year from Simplex’s maiden film. Simplex’s upcoming film, Jesters: The Game Changers, is a historical comedy starring Cho Jin-woong and Son Hyun-joo, and is set to be released in August this year in South Korea. Shares of Spackman closed flat at 1.7 cents on Friday.
Singapore Press Holdings: The media and property group on Friday reported a 44 per cent drop in third-quarter net profit to S$26.2 million from S$46.9 million a year ago as the media business stayed challenged amid falling print advertisement and circulation revenue. The lower earnings were also due to higher operating expenses which rose 5.5 per cent to S$220 million on the back of higher operational costs given the enlarged student accommodation portfolio and SPH Reit as well as higher financing costs and professional fees, said SPH in its results release. SPH shares closed unchanged at S$2.49 on Friday before the results release.
Yoma Strategic Holdings: The mainboard-listed company on Sunday said Pernod Ricard has subscribed to 34 per cent of a joint venture (JV) company called Seagram MM Holdings. Seagram MM Holdings is the holding company of Seagram Myanmar Company, a subsidiary housing Seagram’s whisky brands Seagram High Class and Seagram Imperial Blue. Following Pernod Ricard’s share subscription, Yoma Strategic now holds 19.8 per cent of Seagram MM Holdings, while Win Brothers hold 33 per cent, and Delta Capital Myanmar holds 13.2 per cent. Yoma Strategic shares last closed at S$0.385 on Friday, up one Singapore cent or 2.7 per cent.
AusGroup: The construction and marine services provider's subsidiary AGC Industries has secured a A$30 million (S$28.52 million) construction contract with Yara Pilbara Nitrates in Western Australia. The contract covers deconstruction and construction work of dryers, heat exchangers and an absorption tower for a technical ammonium nitrate plant. AGC is the primary contractor that will provide work including welding, boilermaking, scaffolding, rigging, cranage, insulation and fabrication. Shares of AusGroup closed down 3.7 per cent at S$0.026 on Friday.