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Singapore stock market and companies daily report ( Jackspeed Corporation,CapitaLand’s Australian unit,Tat Hong Holdings’s ) (July 16, 2010)

Contributed by Shares Investment

By Shares Investment

M1 Lifts Q2 Earnings 10% To $40.8m; Declares Higher Dividend

M1 registered a 10% rise in net profit to $40.8m for 2Q10 due to improved operating revenue and larger customer base. M1 also increased its dividend slightly, with a declared interim cash dividend of 6.3 cents a share, to be paid in August, up from 6.2 cents a year back. For the first six months of the year, net profit increased to $80.1m, up 1.5% from the same period last year – or 9.2% if a tax credit adjustment that boosted earnings in the earlier period was excluded. Operating revenue at $472.1m increased 25.3% y-o-y due to higher service revenue and handset sales. Segmentally, service revenue rose 4.8% to S$364.0m, benefiting from an enlarged customer base.

Significance: Judging from the current outlook as well as the impending launch of new fibre-optic broadband highway, earnings for FY10 is likely to improve, compared to FY09.

Jackspeed Buys 80% Of Mil-Com Aerospace For $6.3m

Jackspeed Corporation has entered into a sale and purchase agreement with Mil-Com Investments to purchase 800,000 Mil-Com Aerospace shares representing an 80% stake for $6.3m. Mil-Com Aerospace is in the business of the provision of aerospace engineering support services, aviation training and consultancy services. Jackspeed is currently engaged in the business of manufacturing, upholstering and designing customised quality leather products and accessories for the automotive, marine and aviation sectors.

Significance: In view of the generally competitive business environment and challenging economic conditions, the acquisition will provide a new business opportunity to the Group and serve as a new engine of growth for the Group, so as to enhance long term shareholder value.

Australand Establishes A$1.3b Unsecured Debt Facility

CapitaLand’s Australian unit, Australand, has established a A$1.3b unsecured debt facility. This replaces existing secured facilities totalling A$1.15b. ‘We are pleased to have achieved this first step in moving to a totally unsecured borrowing platform,’ said Australand’s chief financial officer Kieran Pryke. The new facility comprises three tranches: A$325m that expires in Jun-12, A$650m expiring in Jun-13 and A$325m expiring in Jun-14. The former secured facilities were: an A$750m multi-option facility that was going to expire in Aug-11, and three secured bank bilateral facilities of A$248m, A$100m and A$48m expiring in Apr, Jun and Nov-12. The facility reduces the amount of debt expiring in any one year and extends Australand’s debt maturity profile to 2.6 years.

Significance: The new facility is expected to improve Australand’s liquidity position. Coupled with the medium-term euro note programme, this will help the company further diversify its sources of debt capital and improve its access to longer-dated funding.

Tat Hong To Buy The Rest Of Tutt Bryant

Tat Hong Holdings’s subsidiary, Tat Hong International, has agreed to buy all the remaining shares of Tutt Bryant Group (TBG) that it does not already own at 92 Aussie cents ($1.12) a share. Tat Hong Holdings, which already owns 70.36% of Tutt Bryant Group (TBG), offer a price represents a premium of 46% to TBG’s closing price of A$0.63 on the Australian Securities Exchange yesterday. The offer values the ASX-listed construction equipment sales and industrial equipment hire service provider in Australia at A$132m. The directors of TBG unanimously recommend that all holders of TBG shares should accept the offer in the absence of a superior proposal. They intend to accept the offer in respect of TBG shares owned or controlled by them.

Significance: The acquisition is in line with Tat Hong’s plan to extend its presence in Australia. In particular, Australia’s resilient oil and gas and resources sectors will continue to fuel its planned strategic expansion for heavy lifting and haulage services.

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