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Singapore stock market and companies daily report (Wilmar International, Midas Holdings, Keppel Offshore & Marine, Kreuz Holdings) (July 22, 2010)

Contributed by Shares Investment

By Shares Investment

Wilmar To Buy Natural Oleochemicals For RM450m
Wilmar International (Wilmar) is buying 91.38% of Natural Oleochemicals, a unit of Malaysia’s Kulim group, for RM450m ($192.3m) in cash. The acquisition of the Johor-based oleochemical producer is expected to be completed within three months. Wilmar said the purchase will be funded internally and through bank borrowings. The acquisition is subject to certain conditions including regulatory approvals from Malaysia’s Ministry of International Trade and Industries, said Wilmar. Oleochemicals are chemicals derived from animal and plant fats. And Natural Oleochemicals is one of the world’s largest producers, making products such as glycerine, soap noodles, fatty acids and esters from crude palm kernel oil and palm stearin.

Significance: The acquisition will consolidate Wilmar’s leading position in the global fatty acids market and entrenches Wilmar as Asia’s dominant oleochemicals company with a market share of almost 35% of Asian fatty acid production capacity.

Midas Clinches 2 Contracts Worth Rmb130m
Midas Holdings’s Aluminium Alloy Division, Jilin Midas Aluminium Industries unit has won two contracts worth a combined Rmb130m ($26.4m) to supply aluminium alloy extrusion profiles for 480 railway cars. First contract, worth Rmb58m, is for 192 train cars in the Pearl River Delta in Guangdong, China. The second contract worth Rmb 72m contract is for 288 train cars in Hangzhou. Both contracts were awarded by Nanjing SR Puzhen Rail Transport (NPRT), in which Midas holds a 32.5%-stake. Midas said in a statement that the aluminium alloy profiles are expected to be delivered to the Pearl River Delta Inter-City Train Project (Dongguan-Shenzhen Section) and the Dongguan-Huizhou Inter-City Train Project from 2010 to 2011, and to the Hangzhou Metro Line 1 Project from 2010 to 2012.

Significance: These contracts will have positive impact on the Group’s financial results FY10-12. Meanwhile, Midas strategic stake in NPRT enables the company to leverage on the rapidly growing metro train sector in the PRC.

Keppel O&M Wins Two Deals Worth $170m
Keppel Offshore & Marine (Keppel O&M), through Keppel Shipyard and Keppel FELS Brasil SA, has secured two contracts totalling $170m from repeat customers for the conversion of a Floating Production Storage and Offloading (FPSO) vessel and repair of a semisubmersible drilling rig respectively. The first contract is for the conversion of the very large crude carrier Theseus into an FPSO facility for Single Buoy Moorings. Work is expected to start in the third quarter of this year. Scheduled to leave Keppel Shipyard in 1Q12, the vessel will head to Brazil, where the installation and integration of topsides will be completed. The FPSO will subsequently be chartered to Petrobras Netherlands for deployment in the deepwater Tupi Nordeste area in Brazil’s Santos Basin. The second contract was awarded to Keppel FELS Brasil by Queiroz Galvao Oleo e Gas for repair and maintenance on its semi drilling rig Alaskan Star. Expected to be completed in Oct-10, the rig will be chartered to Petrobras for deployment in the Campos Basin off Rio De Janeiro, Brazil.

Significance: Deals enhance order book and reaffirms Keppel Corp’s leadership position in the design & constructions of offshore rigs.

Kreuz Holdings Launches Catalist IPO Of 80m Shares
Kreuz Holdings, a subsea solutions provider for the oil and gas industry, plans to raise about $19.2m through an initial public offering (IPO) on Catalist. The IPO, which represents 15.8% of the group’s enlarged share capital, comprises 4.5m public offer shares and 75.5m placement shares. At 27 cents each, it is tagged at a historical price-earnings ratio of about 6.9, based on the company’s adjusted earnings per share of 3.9 cents for the financial year ended 31 Dec-09. Kreuz Holdings, which provides sub-sea services such as the inspection, repair and maintenance (IRM) of offshore production and pipeline facilities, started as a unit of Swiber Group. And has the first right of refusal to participate in Swiber’s offshore projects.

Significance: Kreuz’s close working relationship with the Swiber Group enables it to gain greater access to the offshore construction industry and to benefit from the increased demand for sub-sea services.

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