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Singapore stock market and companies daily report (CCT, Stamford Tyres’, Swing Media) (March 18, 2010)

Contributed by Shares Investment

By Shares Investment

CCT Issues $225m 5-year Unsecured Convertible Bonds Due 2015

Capital Commercial Trust (CCT) is planning to raise at least $225m and up to $250m through a five-year convertible bond issue to be placed with institutional and accredited investors. The bonds are unsecured and convertible into new CCT units at a conversion price of $1.356 per new CCT unit, at an interest rate of 2.7% per annum, payable semi-annually. “The convertible bonds’ five-year maturity will help to extend the Trust’s current average debt maturity”, said Richard Hale, Chairman of the Manager of CCT. Net proceeds of the issue will be used by the office REIT, which is partly owned by CapitaLand, plans to use most of the funds (75-90%) for asset enhancement and refinancing of existing borrowings.

Stamford Tyres’ Stock Soars On Positive 3Q Results

Stamford Tyres Corporation’s (STC) shares broke their usually stagnant state in trading yesterday, with an 8.1% surge in share price from $0.185 to $0.20. This sudden increase in interest occurred after the tyre distributor released its 3Q results for the period ended Jan 31, 2010, on 16-Mar.  STC posted a net profit of $2.3m for its 3Q10, up from $69,000 in 3Q09 while revenue for the quarter had risen 29.5% yoy to $81.5m, helping the firm to increase its quarterly gross profit from $15.8m the year before to $18.8m.

However, STC expects tougher market conditions in the 4Q as tyre manufacturers continue to increase prices due to higher cost of raw materials. In addition, higher global aluminium prices may impact the wheels business.

Swing Media, Epure In The Spotlight Over Dual Listing Move

Swing Media and Epure International were in the spotlight yesterday, as news of Swing Media’s dual listing sparked interest among investors. Both counters hit the top volume chart. But after jumping as much as 7%, Swing’s shares gave up all their intraday gains to close unchanged at $0.065 with turnover of 65.46m units. It can be expected that once Swing Media finalise its solar energy contract with PetroChina, it would be able to command a higher valuation. Meanwhile, Epure jumped 9.2% to $1.01 at the close yesterday, on a volume of 30.72m shares. The company first announced its dual listing plan back in January and has since received a slew of ‘buy’ calls from several brokerage houses. DBS Vickers, for one, said this week that it was sticking with its ‘buy’ call on its target price for Epure of $1.20, catalysed by further contract wins and the upcoming Hong Kong dual listing, which could potentially raise net proceeds of up to Rmb2b ($408m).

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.