Today’s Focus
Goodpack - Proposed acquisition by KKR at S$2.50 per
share. We recommend accept the offer.
After months of discussions, KKR, through its affiliate IBC
Capital, has proposed to acquire Goodpack under a scheme of
arrangement (SOA) at an offer price of S$2.50 per share.
Unlike a takeover offer, a SOA requires approvals from 75% of
shareholders at a Court meeting and sanction by the High
Court of Singapore. After that, KKR can proceed to acquire
100% of Goodpack and delist the company. KKR has received
an irrevocable undertaking from founder Mr. David Lam who
has a controlling stake (32%). The offer price is close to our
DCF-based target price of S$2.52 and offers 7% premium to
the last closing price (risen 23% since 19 Mar). We recommend
to accept the offer and vote in favour of the deal, which allows
investors to realise their investment in Goodpack.
To become a top player in China’s environmental space, SIIC
Environment reaffirmed its plan to add 1-1.5m tons of water
asset and 2k tons of waste-to-energy capacities each year to
reach 8m tons of water and 10k tons of waste-to-energy (WTE)
capacities in 2016. SIIC is a beneficiary of positive industry
outlook. Beyond acquisitions, SIIC can still grow through
upgrades /phased expansion of portfolio. Maintain BUY and
target price of S$0.25.
Yoma Strategic Holdings said its 80%-owned subsidiary YSH
Finance had increased its stake in Myanmar's Digicel Asian
Holdings from 8% to 25%, thereby making the latter an
associated company of Yoma. The remaining 75% interest in
Digicel Asian Holdings is held by Digicel Group.
WE Holdings is acquiring a cumulative 25.5% stake in Catalistlisted
Jubilee Industries for S$14.5m. The consideration is
satisfied by S$12.0m in cash and S$2.5m worth of new We
Holdings shares issued at S$0.01323 per share. Jubilee will be
used to drive the Electronic Components business while the
Group will focus on growing the Coal & Iron Ore and Cement
& Oil business units.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,675.5 69.2 0.4
S&P 1,911.9 11.4 0.6
NASDAQ 4,237.1 51.3 1.2
Regional Indices
ST Index 3,274.1 (8.8) (0.3)
ST Small Cap 553.1 1.5 0.3
Hang Seng 22,944.3 (18.9) (0.1)
HSCEI 10,082.9 (43.6) (0.4)
HSCCI 4,301.1 (6.9) (0.2)
KLCI 1,867.6 4.8 0.3
SET 1,392.7 4.4 0.3
JCI 4,963.9 (9.1) (0.2)
PCOMP 6,780.3 (10.2) (0.1)
KOSPI 1,997.6 (12.7) (0.6)
TWSE 9,055.3 19.2 0.2
Nikkei 14,636.5 34.0 0.2
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn)
Total Daily Vol (m shrs)
12m ST Index High
12m ST Index Low
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
27 May
Target Price
(S$)
ComfortDelgro Buy 2.350 2.50
Global Logistic Properties Buy 2.780 3.42
Mapletree Greater China
Commercial Trust
Buy 0.895 1.02
Thai Beverage Public Buy 0.620 0.68
Stock Picks – Small Cap
Rec’n Price (S$)
27 May
Target Price
(S$)
Vard Holdings Buy 1.060 1.21
Nam Cheong Buy 0.385 0.47
Centurion Corporation Buy 0.735 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
Technics Oil and Gas has been awarded contracts worth a
total of S$7.4m through its subsidiaries. These contracts
involve supply of booster gas compressor package for a
wellhead platform for Vietnam and also for construction of
steel structure.
CCM Group announced that it would revise terms for a
proposed rights and bonus issue and said that it would
expand the scope of its investment activities beyond
construction and property. CCM said that it now plans to
issue twelve rights shares at S$0.003 each for every existing
share instead of eight rights shares at S$0.005 each for
every existing share. The number of rights shares will now
increase to 43.1bn instead of 28.75bn previously. The
Company’s concurrent proposal for a bonus issue, in which
it would issue one bonus share for every rights share
subscribed for, remains unchanged although the total
quantum of Bonus Shares will increase to 43.1bn. The issue
of the New Shares is renounceable and non-underwritten.
Tiong Seng Holdings and its JV partner have been awarded
the contract for the construction of the Great World Station
and Tunnels for the Thomson Line by the Land Transport
Authority. The contract is worth approximately $316m and
expected to commence in May 2014.
Sincap Group proposes to expand its core business to
include property development and property investment. It
also intends to allot and issue up to 175.5m new shares at
an issue price of S$0.07 per Placement Share to raise gross
proceeds amounting to S$12.3m.
The Singapore government has planned for S$1.2bil
government IT tenders this year with prominent feature on
smaller and more focused IT projects. This covers areas
include cybersecurity, infrastructure, system development
and maintenance, data and analytics, cloud and mobile
services. 33% of the tenders will be valued at between
$200,000 and $500,000, and 22% below $200,000. Out of
the approximately 380 infocomm tenders that are likely to
be awarded this year, 90% will be valued below $5mil. This
will mitigate risk and allow for faster completion of projects,
according to IDA.
The services sector raked in 4.9% more in first- quarter sales
than it did a year ago, with all segments experiencing
single-digit increases in turnover. But the pace of growth
has slowed from a revised 7.1% in 4Q13, said the
Department of Statistics (DOS). DOS noted all services
industries fared well during the quarter, highlighting health
& social services as having recorded the highest turnover
growth of 9.5%, mainly from higher receipts by hospitals
and specialised medical centres.This was followed by the
increases in revenue recorded by education services (7%)
and transport & storage services (5.6%). The financial &
insurance services segment - which carries the biggest
weight on the index of almost 25% - saw receipts grow
3.4% y-o-y.
US markets continued its climb as economic data
underpinned a recovery in the economy. Orders for April
durable goods climbed for a 3rd month (actual +0.8%,
consensus -0.7%). Consumer confidence increased to 83 in
May from 81.7 a month earlier. The S&P/Case-Shiller index
of property prices in 20 U.S. cities for March increased
12.4% y-o-y (consensus 11.8%).
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