Reports » Singapore

Singapore stock market and companies daily report (Midas Holdings, Rickmers Maritime, Cache Logistics Trust) (March 20, 2013)

Contributed by Shares Investment

Midas Secures US$29.4m Russian Contract
Midas Holdings’ subsidiary has won a €22.7 million (US$29.35 million) contract from Ural Locomotives, a joint-venture company between Siemens AG and Russia’s Sinara Group, to supply aluminium-alloy extrusion profiles to the Russian railway market. Under the terms of the contract, Midas will supply aluminium alloy extrusion profiles for use in the manufacture of 100 electric train sets (1 train set = 5 train cars), or 500 electric train cars for commuter passenger service. Delivery for the contract is to take place progressively from this year to 2019.
Significance: This contract marks Midas’ first international contract this year, and an affirmation that its diversification strategy and efforts in growing is international markets are bearing results. The contract is expected to contribute positively to Midas’ financial performance for FY13 to FY19.

Rickmers Maritime Announces $98.5m Right Issue To Repay Loans
Shipping trust Rickmers Maritime plans to raise $98.5 million in a non-underwritten renounceable rights issue. It is offering up to 423.7 million new one-for-one rights units at $0.24 each, which represents a 33.3 percent discount to the counter’s closing price on 19 March. Rickmers plans to use the proceeds to repay bank loans, including the top up facility granted in 2008. It has also secured an agreement with its nine lending banks to extend the current value-to-loan (VTL) covenant waiver for a further one-and-a-half years to 29 December 2014. The trust also intends to maintain the quarterly DPU at US$0.006 for FY13.
Significance: The extension of Rickmers’ existing VTL covenant waiver enables the firm to further deleverage its balance sheet. With a number of leading commentators expect to see improved asset values and stronger charter hire rates for containerships by December 2014, this transaction would, therefore, give Rickmers Maritime a stronger financial position to take advantage of a recovery in the market.

Cache Successfully Raises $86.8m In Private Placement
Cache Logistics Trust said on 19 March that its private placement to raise $86.8 million has been oversubscribed overnight and it has since closed its orderbook. According to Cache, the placement has drawn strong interest from international investors with the issue price of $1.24 per new unit, representing a 29.2 percent premium to the net asset value per unit of around $0.96. Furthermore, the trust said the proceeds will help to fund the proposed acquisition of the Precise Two property at 15 Gul Way as well as other potential acquisitions, to pare down debt, and for general corporate and working capital purposes.
Significance: The acquisition of Precise Two enables Cache’s unitholders to benefit from the 100 percent occupancy, and a predictable growth in cash flow. The acquisition will also strengthen Cache’s leading position in the ramp-up logistics warehouses segment in Singapore.