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Singapore stock market and companies daily report (Albedo, Haratawan Hldgs, Ipco Int’l) (December 16, 2013)

December 16, 2013, Monday, 04:57 GMT | 23:57 EST | 09:27 IST | 11:57 SGT
Contributed by Shares Investment

Albedo To Buy More Iskandar Land In $1.9b RTO

- Further to the reverse takeover (RTO) announcement made in September 2013 where Albedo agreed to buy seven parcels of land in Iskandar, Johor Bahru, Malaysia, the firm has consented to purchase an additional six parcels of land, measuring approximately 520 acres.

- The total purchase consideration for all 13 land parcels is $1.9 billion, representing a 16.6 percent discount to the aggregate market valuation of all the land parcels, more than double the original consideration of $774 million for the initial seven land parcels.

- The 13 parcels of land includes a prime waterfront commercial site called Lido Waterfront, within a 10-minute drive from the Johor Causeway and walking distance to the popular and upcoming Country Garden @ Danga Bay residential project.

Significance: Upon completion of the RTO, Albedo will be transformed into a major property developer in Malaysia. The additional six land parcels will bring Albedo’s Iskandar land bank to 13 parcels of about 1,182.6 acres.

Hartawan Becomes Wilton Resources Corporation Through RTO

- Following a successful $300 million RTO, Hartawan Holdings has changed its name to Wilton Resources Corporation. Wilton will retain Hartawan’s stock code – 5F7.SI – on the Singapore Exchange and begin trading under the new name on 16 December 2013.

- The RTO transforms the firm from its property leasing/management and hospitality businesses into a gold exploration and mining company in Indonesia.

- Wilton owns two concession blocks in the West Java province containing proved and probable ore reserves estimated at 557,000 ounces (17,333 kilograms) of gold and measured and indicated resources estimated at 656,000 ounces of gold as at 31 May 2013.

Significance: Wilton intends to continually carry out exploration works such as drilling, to further discover and upgrade its gold resources estimates.

Ipco 2Q13 Sinks Into The Red

- For the quarter ended 31 October 2013, Ipco International’s ordinary business turnover rose 24.8 percent on the back of increased gas consumption and connection fees by industrial and household customers in its natural gas business segment, partially offset by lower demand of burn-in boards from semi-conductor manufacturers.

- However, Ipco suffered an $83.7 million fair value loss on quoted trading securities and $29.5 million net loss on the disposal of these assets as a result of the October sell-off on penny stocks, particularly Blumont, which Ipco holds a substantial position in.

- Despite a $1.6 million dip in expenses, Ipco sank into the red with losses of $114.7 million for 2Q13, compared to a $5.2 million profit the period a year earlier.

Significance: Moving forward, Ipco’s ESA Electronics is working to secure contracts from companies in the US and United Kingdom to counter-balance the excess capacity of its burn-in boards while Ipco is continuously seeking new energy investment opportunities in Hubei, Shandong and other provinces of China for its natural gas segment.