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Singapore stock market and companies daily report (Olam International, Ntegrator International, Cerebos Pacific) (August 09, 2010)

Contributed by Shares Investment

By Shares Investment

Olam Issues $337m 10-Year Senior Unsecured Bonds
Olam International (Olam) has issued US$250m ($337m) in unsecured bonds, the leading global, integrated supply chain manager of agricultural products and food ingredients said in a statement on the Singapore Exchange. The Bonds have a maturity of 10 years, which provide Olam with long term financing, enabling it to further term out its debt maturity profile. The Bonds were priced at par and bear a coupon of 7.5% in line with the pricing guidance. According to Olam, this is the first unrated offering of US-dollar denominated bonds by a Singapore issuer in the international bond market. Olam said it will use the net proceeds of the bond issue for capital expenditure and the financing of potential acquisitions. In the meantime, the bond issue was oversubscribed by more than 80 investors, with 79% from Asia and 21% from Europe. In terms of investor classes, 46% of the allocation was to private banks, 33% to fund managers, 19% to other banks and 2% to others.
Significance: As a debutant to the dollar market, locking in the 10-year funding at attractive historical yields seem attractive, despite a fairly flat period for bond market last week.

Ntegrator Secures 4 Contracts Worth $15.5m
Ntegrator International (Ntegrator), a leading regional communications network specialist and systems integrator, has secured another four contracts worth $15.5m. The deals expand on existing projects with repeat customers including Vietnam’s second largest telco operator, Viettel Corporation; Myanmar’s state-run telco, Myanmar Posts and Telecommunications; a cable TV provider in Myanmar, Forever Group Company Limited; and a subsidiary of Singapore Power, SP Powerassets. The majority of the project work scope is expected to be completed within this financial year. Meanwhile, Ntegrator just reported a 76.5% decrease in its 1H10 earnings in tandem with a 59.8% drop in revenue, largely due to the delay of a major project in Thailand as a result of the recent political unrest in Thailand during 2Q10. Also, due to circumstances beyond the company’s control, formal finalization of some contracts that were scheduled to be signed at the end of the first quarter and delivered by the second quarter of this year were delayed.
Significance: Despite lower top and bottomline achieved in 1H10, these contracts secured of late have increased Ntegrator’s total outstanding orders to $52.3m and are expected to contribute positively to the company’s performance in FY10.

Cerebos Chooses Telstra To Manage Network
Mainboard-listed Cerebos Pacific (Cerebos), a leading food and health supplements company, has outsourced the management of its network infrastructure to Australian giant Telstra International, a division of Australian giant Telstra Corp. Under the deal, Telstra will manage 11 of Cerebos’ sites spread across the Asia-Pacific region where Cerebos has operations, these include a disaster recovery site in Singapore, and operational sites in the Philippines, Thailand, Australia, Malaysia, Taiwan, Hong Kong, Shanghai and Indonesia. ‘This is an outsourced solution, where part of our overall wide area network infrastructure management is now handled by Telstra International,’ said Cerebos Group’s vice-president of information systems, Liew Chee Yin. Neither party would reveal the size of the contract, but Cerebos said the deal would help the company save about US$300,000 per annum in IT operations. Meanwhile, Telstra International has replaced one of the biggest network players in Singapore by winning this contract.
Significance: The deal provides Cerebos a highly resilient blueprint to enhance productivity of its operations and allows it to focus on other business priorities.

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