Privatisation candidates rally after SC Global bid

Property plays tipped as candidates to be taken private are rallying after peer SC Global’s (D2S.SG) CEO launched a $1.80/share bid for the 44.9% of the company he doesn’t already own.

UOB KayHian tips Wheelock Properties (M35.SG) and Ho Bee (H13.SG) as “highly likely” candidates to be taken private. It notes Wheelock Properties, 76%-owned by unlisted parent Wheelock & Co, was trading at a 27% discount to book value at Wednesday’s close, with the parent privatised in 2010 at a huge 144% premium to its last traded price.

Ho Bee, about 70% family-owned, was at a 28% book-value discount at Wednesday’s close, it notes; despite management denying privatisation plans, recent share buybacks signal deep value, UOB-KH says.

Guoco Group’s (0053.HK) recent privatisation talks have spurred interest in its 65%-owned GuocoLand (F17.SG), but a privatisation is less likely as it trades at an 18% RNAV discount, it says.

It tips other likely candidates as GuocoLeisure (B16.SG), Hiap Hoe (5JK.SG) and Sim Lian (S05.SG).

Wheelock is up 3.1% at $1.97, Ho Bee is up 4.7% at $1.785, GuocoLand is flat at $2.42, GuocoLeisure is up 1.6% at $0.625 and Hiap Hoe is up 2.5% at $0.625, but Sim Lian is down 0.7% at $0.735 in slim volume.

Feb 7: Noble Group, Sim Lian, CapitaMall Trust

Singapore shares may drift lower on Tuesday after U.S. stocks closed slightly lower on lingering certainty about the euro zone’s debt crisis, with Greek leaders delaying bailout talks.

Singapore’s benchmark Straits Times Index rose 0.76 percent on Monday to 2,940.10 points. Here are some stocks and factors to watch, according to Reuters:

Singapore-listed commodities firm Noble Group may be in focus after it named a former Goldman Sachs top Asian banker as its chief executive officer, easing worries over a recent spate of senior level departures.

Property development and construction firm Sim Lian said on Monday 32 of its 48 penthouses in Tampines, eastern Singapore, were sold over the first weekend. Prices start from $1.1 million for the penthouses.

The manager of CapitaMall Trust said on Monday Wilson Tan Wee Yan had been appointed as deputy chief executive officer of the company with effect from Feb 4. Tan joined CapitaMall Trust from the firm’s parent, CapitaMalls Asia.

Aztech Group said on Monday that despite an increase in revenue, it will record a loss for the fourth quarter ended Dec 31, 2011, compared with a profit a year earlier due to lower margin and higher fuel cost.

Dec 5: NOL, SGX, Sim Lian, Hi-P

Singapore shares are likely to open higher today, buoyed by data showing US unemployment fell to a 2-1/2-year low and as Italy unveiled a package of austerity measures to shore up its strained finances and stave off a euro zone crisis.

The benchmark Straits Times Index gained 0.42% to 2,773.36 points on Friday.

Here are some stocks and factors to watch, according to Reuters:

Container shipping group Neptune Orient Lines (NOL) may be in focus after a German paper Die Welt reported on Saturday the firm has resumed talks about buying German rival Hapag-Lloyd (HPLG.UL), without identifying its sources.

Singapore Exchange said turnover in securities trading on its bourse fell 37% in November year-on-year to $25.4 billion, hurt by global uncertainties. Securities daily average value was $1.2 billion, down 40% from a year earlier.

More than 200 workers at a electronics plant owned by Hi-P International in Shanghai remained on strike for a third day on Friday to denounce what they said was a management plan for mass layoffs.

Sim Lian Group said its wholly-owned subsidiaries have been jointly awarded the tender for a land parcel in Singapore with a site area of 18,954.5 square metres for commercial and residential development.

UMS, which makes semiconductor equipments, said it will acquire two manufacturing companies, Integrated Manufacturing Technologies and Integrated Manufacturing Technologies Inc for $28 million in total.

Aug 31: CCM, Olam, Sim Lian Group, Wing Tai

The following companies may have unusual price changes in Singapore trading today. Stock symbols are in parentheses and share prices are from the previous close. Singapore’s Straits Times Index rose 1.6% to 2,791.89 on Aug. 29. The market was shut yesterday for a holiday.

CCM Group (CCM SP): The Singapore-based construction company said it won two contracts, valued at $100.5 million, to build a public housing flat and a private residential condominium. CCM surged 15% to 13 cents.

China Hongcheng Holdings (CHC SP): The textile maker said fourth-quarter net loss climbed to 41.1 million yuan ($7.7 million) compared with a loss of 5.3 million yuan a year earlier. The stock was unchanged at 3 cents when it last traded on Aug. 26.

Olam International (OLAM SP): The supplier of agricultural commodities said fourth-quarter net income increased 38% from a year earlier to $127.4 million. Olam jumped 3.1% to $2.33.

Sim Lian Group (SLG SP): The Singapore-based property developer and construction company said full-year net income doubled to $200 million from a year earlier. The stock surged 8.7% to 50 cents.

Wing Tai Holdings (WINGT SP): The developer of high-end residential properties in Singapore said fourth-quarter net income more than doubled to $170.6. Wing Tai advanced 2.9% to $1.255.


 

Jul 5: Singapore stocks: Cautious start eyed; property stocks, Hsu Fu Chi in focus

Singapore shares are likely to have a cautious start on Tuesday as investors remain cautious about Greece’s debt problems and seek direction in thin markets after Wall Street was closed for Independence Day on Monday. Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.46% on Monday to 3,153.44 points. Here are some stocks and factors to watch:

Property stocks such as Sim Lian Group (SIML.SI) may be in focus after Singapore media reported that future land sales under the design, build and sell scheme (DBSS) have been suspended while it is being reviewed. DBSS has come under the spotlight recently after Sim Lian set indicative prices of as much as $880,000 for five-room flats in its Centrale 8 project.

Nestle (NESN.VX), the world’s largest food company, is among companies in talks with Chinese candies and pastries group Hsu Fu Chi International (HSFU.SI) on a deal that could be worth over US$2 billion ($2.5 billion). Its shares have not been lifted from a trading suspension.

Singapore budget carrier Tiger Airways (TAHL.SI) may be in focus after Australia’s ban of its flights on safety grounds sent shares tumbling to a record low on Monday.

Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse operator, said on Tuesday securities turnover increased 8% and derivatives volume rose 17% in June from a year earlier.

Singapore water treatment firm Hyflux (HYFL.SI) said on Monday it had secured financing of $150 million to fund its Tuaspring desalination plant. The financial package was arranged by DBS Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

Singapore brokerage Kim Eng (KEHS.SI) requested suspension of its shares on Monday. The firm said the cash offer by Maybank was closed.