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Stocks to watch: Yangzijiang, CapitaLand Retail China Trust, Delong, Hupsteel, Seroja
THE following companies saw new developments that may affect trading of their securities on Friday:
Yangzijiang Shipbuilding: The selloff in the stock showed little signs of easing on Thursday after the lifting of a trading halt that was instituted on Aug 8. At Thursday’s close, shares in China's largest non-state owned shipbuilder plunged 18 Singapore cents, or 17.3 per cent, to S$0.86, on hefty turnover of 129.3 million units. Its fall brought it to a 2.5-year low, despite an active share buyback by Yangzijiang.
On Aug 8, Yangzijiang's shares had dived by as much as 20 per cent before the trading halt. The trigger for the panic selling was said to have stemmed from a report by shipping news service TradeWinds two weeks ago that Liu Jianguo was being probed for "serious disciplinary violations". Mr Liu is chairman of the management committee of the Jiangsu Yuanlin Charity Foundation set up by Yangzijiang’s executive chairman, founder and controlling shareholder Ren Yuanlin. Yangzijiang said on Wednesday that Mr Ren had taken leave to focus on "assisting in a confidential investigation carried out by certain PRC governmental authorities".
CapitaLand Retail China Trust (CRCT): The shopping mall real estate investment trust’s manager on Thursday announced the appointment of Lucas Loh, president, China, of CapitaLand Group, as non-executive non-independent director and chairman of CRCT’s executive committee. Mr Loh replaces CapitaLand Group CEO Lee Chee Koon in the two roles, who will step down from CRCT’s executive committee in order to spend more time growing the group's overall business.
Separately, CRCT will launch its preferential offering at 9am on Friday, and close it at 5pm on Aug 26. It is offering 86.9 million new units in CRCT on the basis of 87 new units for every 1,000 existing units at an issue price of S$1.44 per new unit. The preferential offering together with a private placement are meant to raise gross proceeds of about S$279.4 million.
Units of CRCT closed down one Singapore cent or 0.68 per cent to S$1.46 on Thursday.
Delong: The steelmaker said on Friday morning it had lost its public float. This comes after the offeror for steelmaker Delong had amassed 90.73 per cent in shares and valid acceptances of the company as at 5.30pm on Thursday. With this, the offeror, a vehicle led by Delong’s chief executive Ding Liguo, the offer has been declared unconditional. After the offer closes on Sept 10, the offeror will compulsorily acquire all the shares from shareholders who have not accepted the offer at S$7 apiece. The offeror does not intend to keep the company listed. Shares of Delong last traded on Wednesday at S$6.98.
Hupsteel: The founding Lim family's voluntary conditional cash offer for steel trader Hupsteel has been extended from Aug 16 to Aug 30. In its latest circular, the offeror emphasised that the offer price of S$1.20 per share is final and it does not intend to revise it. As at 5pm on Thursday, the offeror had amassed 83.416 per cent in shares and valid acceptances in Hupsteel, still shy of the 90 per cent it requires to succeed in its privatisation. The counter closed flat at S$1.18 on Thursday.
Seroja Investments: The watch-listed company on Thursday night said it will sell its entire operating business in Trans LK Marine and its assets to the group’s executive director and chief operating officer Masdjan for US$32.2 million. With this, Seroja will cease to have any operating business and will be deemed a cash company. The business for sale provides marine transportation of dry bulk freight. Shares of Seroja last traded on Aug 8 at 3.2 Singapore cents.