Reports » Singapore

Singapore stock market and companies daily report (DBS Group, Global Logistic Properties, TEE International) (October 12, 2012)

Contributed by Shares Investment

DBS Sells Partial Stake In BPI for $757.3m
DBS Group Holdings announced to divest part of its investment in the Bank of the Philippine Islands (BPI) to Ayala Corporation for a total consideration of $757.3 million in cash. The transaction will realise a gain of approximately $450 million against the carrying value of the investment. DBS has been a strategic investor in BPI, holding a 20.3 percent effective interest. Following the divestment of 10.4 percent, the bank will hold a 9.9-percent stake and continue to have representation on BPI’s board. Chief executive officer, Piyush Gupta was pleased to share that the transaction will allow the bank to continue being a meaningful shareholder in a capital-efficient manner.
Significance: The sale of DBS’ stake in BPI was in line with its disciplined capital management and would strengthen its capital position ahead of the introduction of Basel III on 1 January 2013. Basel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

GLP Expands Borrowing Capacity For Development Needs In China
Leading provider of modern logistics facilities, Global Logistic Properties (GLP), has agreed to a new US$1 billion credit facility with China Merchant Bank (CMB). The ten-year, secured credit facility provides for borrowings at a preferential interest rate for up to US$1 billion for onshore and offshore funding requirements for the company’s development needs in China. Heather Xie, chief financial officer of GLP noted that the agreement with CMB illustrates its strong relationships with China’s leading banks. Earlier, GLP welcomed CBRE Global Multi Manager clients into its existing strategic joint venture with China Investment Corporation with the sale of 16.7 percent stake in GLP Japan Logistics Partners. The transaction was consistent with its strategy to recycle capital and to continue to grow its fund management platform.
Significance: Notably, the new credit facility provides GLP with an additional source of funding and to further strengthen its financial position as it continues to grow its business.

TEE International Sees 27.8% Profit Growth For 1Q13
For the first quarter ended 31 August 2012, leading engineering and integrated real estate group, TEE International, posted a 27.8 percent growth in net profit to $2.8 million despite a 23.3 percent decline in revenue to $30.7 million – attributed to lower revenue recognised for some of its newly awarded construction projects. However, earnings were lifted by an increase in other operating income and improved gross profit margins from 12.3 percent to 18.3 percent year-on-year. The company maintains a healthy order book of $198.8 million in Singapore and the region while its telecommunications engineering and waste treatment business have outstanding orders of $81.9 million. Going forward, the company will continue to explore opportunities to leverage on its track record.
Significance: Although its engineering segment remains TEE International’s main contributor to top and bottom lines, the company is seeing positive developments in its real estate segment as it continues to build on the excellent momentum to pursue new orders in all its businesses.