Here are some interesting updates for you to digest over the weekend.
Keppel Corporation Limited (SGX: BN4)
In the ongoing tussle for Singapore Press Holdings Ltd (SGX: T39), or SPH, we wrote about Cuscaden Peak’s counter-offer for the media company last week.
This offer was in response to Keppel Corporation Limited’s higher offer for SPH.
But the oil and gas conglomerate is not budging in the bidding war.
Keppel is standing firm and has not raised its offer price further.
The company has reiterated that SPH shareholders should vote for the deal as they will own shares in two REITs — SPH REIT (SGX: SK6U) and Keppel REIT (SGX: K71U).
To sweeten its argument, Keppel highlights that SPH shareholders who receive the REIT units will enjoy accrued distributions that will amount to around S$0.03 more per SPH share, effectively valuing Keppel’s offer at S$2.381, slightly higher than the S$2.36 cash offer by Cuscaden Peak.
The payout will also be made by mid-January next year, earlier than Cuscaden Peak’s payout by one month.
Ascendas REIT (SGX: A17U)
Ascendas REIT, or A-REIT, has announced that it will work with CapitaLand Development to jointly redevelop 1 Science Park Drive into a life science and innovation campus.
The entire project will cost around S$883 million and will more than triple the plot ratio of the property from the current 1.0 to 3.6.
The estimated completion date will be the second quarter of 2025.
A-REIT will first divest the property for S$103.2 million and then purchase a 34% stake in a special purpose trust, with CapitaLand Development holding the remaining 66%.
The industrial REIT will enjoy a distribution per unit boost of 0.5% as the property will be acquired at a 6.3% net property income yield.
UMS Holdings Limited (SGX: 558)
UMS, an equipment manufacturing and engineering services provider, reported a sparkling set of results for its fiscal 2021 third quarter (3Q2021).
Revenue surged by 50% year on year to S$67.6 million while net profit increased by 17% year on year to S$15.1 million.
For the first nine months of 2021 (9M2021), revenue increased by 53% year on year while net profit jumped by 35% year on year to S$47.4 million.
The group doubled its 3Q2021 interim dividend to S$0.01 from the S$0.005 it paid out a year ago.
The better result was achieved due to the strong growth in the semiconductor industry and the consolidation of its acquisition of JEP Holdings.
Aside from Taiwan, all of UMS’ key geographical markets saw substantial year on year growth.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, also provided a 3Q2021 business update.
In Singapore, the group sold 30% more units for its property development division and garnered a 76% year on year increase in total sales value for 9M2021.
This better performance was primarily due to the launch of luxury developments such as Irwell Hill Residences and Amber Park.
For its overseas markets, domestic demand for residential properties remains strong in Australia while the UK is seeing increased sales enquiries for CDL’s London properties.
For CDL’s investment property division, its Singapore portfolio remained resilient with the office and retail components enjoying committed occupancy rates of 91.5% and 93.3%, respectively.
The property giant’s hotel operations are also seeing an uptick as borders gradually reopen and travel restrictions are eased.
During 3Q2021, global occupancies rose to 55.4%, up from 36.1% a year ago, while RevPAR more than doubled from S$42.2 to S$91.6.
CDL has updated that it continues to explore a potential REIT IPO for its UK commercial assets and is waiting for market conditions to become more favourable before proceeding.
Sembcorp Industries Limited (SGX: U96)
Sembcorp Industries Limited, or SCI, is making progress on its renewable energy goals.
The blue-chip utility giant announced that it will acquire 658 megawatts (MW) of operational wind and solar assets in China.
The outlay of around S$700 million will enable the group to have a scalable renewables platform in China to drive further growth.
SCI’s CEO of China operations Alex Tan emphasized that this acquisition will double its gross capacity in China from 725 MW to 1,400 MW of wind plus solar assets.
With China being the world’s largest renewables market, SCI has prioritised the country as a key growth area for future acquisitions.
This transaction is expected to close by the first half of 2022.
2022 is nearly upon us. We have found 2 megatrends set to explode in the world of investing. And in our upcoming FREE webinar, we’ll be revealing exactly what these trends are. If you’re looking for more growth stocks, you’ll not want to miss this exclusive event. Click here to register now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
