Reports » Singapore

Singapore stock market and companies daily report (CapitaMalls Asia, Fraser and Neave, STX OSV Holdings) (September 06, 2012)

Contributed by Shares Investment

CapitaMalls Asia Acquires New Wuhan Shopping Mall
CapitaMalls Asia announced today that it is acquiring its third shopping mall in Wuhan, China from a state owned enterprise. The agreement entails the acquisition of the retail component of an integrated development situated along Zhong Bei Road in Wuchang District. The development, constructed by China Railway Construction Corporation, also includes residential and office components. The mall will enjoy good connectivity with a direct link from the basement to Zhou Jia Da Wan station on Metro Line 4, which is set to become operational in 2013. The eight-storey mall will have a total gross floor area of about 70,700 square metres (excluding car park). It will be positioned as a middle- to upper-middle income, one-stop shopping destination. When completed in 2014, the shopping mall will cater to the needs of the working professionals, government officials and residents working and living in the vicinity. On a completed basis, the total investment cost of the shopping mall is expected to be about Rmb1,156 million ($228.3 million).
Significance: As the capital city of Hubei province, Wuhan is a fast-growing economy and central location that CapitaMalls Asia seems to be very interested in. Including this development, CapitaMalls Asia would have 59 shopping malls in 36 cities in China, of which 43 are operational and 16 are under development.

F&N To Convene EGM For APB Sale And Capital Reduction
Fraser and Neave (F&N) has scheduled its extraordinary general meeting (EGM) on 28 September 2012 for its shareholders to vote on F&N’s proposed divestment of stakes in Asia Pacific Breweries and Asia Pacific Investment. During the EGM, F&N also intends to seek shareholder approval to distribution the proceeds of the proposed divestment by way of a capital reduction. The proposed cash distribution of $4 billion will represent approximately 84 percent of F&N’s gain on disposal. It will be distributed by way of a capital reduction of one for every three F&N shares, at $8.50 per cancelled share. F&N said that “this means that a shareholder who holds 1,000 shares as at the record date for the capital distribution will receive $2,805, while maintaining approximately the same proportionate shareholding in F&N after the capital reduction is effected”. Lee Hsien Yang, chairman of F&N said that the proposed distribution of the proceeds through capital reduction is a “win-win” as the proposal would result in a more efficient capital structure for the company.
Significance: The proposed share cancellation would allow a rightsizing of F&N’s share base with the reduction in earnings post divestment of its APB interests. F&N also said that the share cancellation would not disturb the relative shareholding percentages of existing shareholders.

STX OSV-Built Vessel Wins Prestigious Award
STX OSV Holdings announced that its platform supply vessel (PSV), Far Solitaire was elected Ship of the Year 2012. The annual Ship of the Year award recognises outstanding vessels delivered from a Norwegian yard, and is instituted by major Norwegian shipping magazine Skipsrevyen. Far Solitaire is a chemical tanker compliant supply vessel according to IBC code 2, which was the main reason for the jury to elect the vessel as Ship of the Year 2012. The technologically advanced vessel has been developed by Farstad Shipping in close co-operation with Rolls-Royce Marine and is the first PSV of this type ever built.
Significance: The award marks the seventh time since 2000 that a vessel built by STX OSV has been awarded the title Ship of the Year. It is also testament of STX OSV’s drive to produce technologically advanced vessels for its clients.