SG Morning Call | CapitaLand and IOI Close to Buying Singapore $1.9 Billion Office Towers, Bloomberg Reports
Market Snapshot
Singapore stocks opened lower on Friday. STI fell 0.5%; OCBC fell 1%; UOB fell 0.7%;Singtel fell 0.5%; DBS fell 0.4%.
Stocks in Focus
$Jardine Cycle & Carriage Limited(C07.SI)$: JC&C announced on Friday that it has entered into a conditional share and asset purchase agreement to sell its Cycle & Carriage automotive distribution and retail operations in Singapore and Malaysia to CCHPL Holdings, a wholly owned subsidiary of Indonesia’s Chandra Asri Pacific. The estimated base purchase price payable in cash is around S$265 million. Shares of JC&C ended at S$27.50 on Thursday, 1.2 per cent or S$0.32 higher.
$Creative Technology(C76.SI)$: The technology group on Thursday posted net profit of US$649,000 for its second half ended Jun 30, compared with a net loss of US$4.38 million in the year-ago period. This was mainly due to a US$1.3 million US tariff refund. Excluding the refund, it would have resulted in a H2 net loss of US$600,000. For the full year, it still incurred a net loss, but it narrowed 94 per cent to a loss of US$576,000. Shares of Creative Technology ended at S$0.785 on Thursday, 0.6 per cent or S$0.005 lower, before the news.
$CNMC Goldmine(5TP.SI)$: Shareholders on Wednesday approved the Catalist-listed gold producer’s transfer to the Singapore Exchange mainboard, said the company on Thursday. About 97.5 per cent of votes were cast in favour of the transfer, which was proposed in May, and will be effective from Aug 28. Shares of CNMC Goldmine ended Thursday 2.2 per cent or S$0.03 higher at S$1.40, before the announcement.
SG Local News
Singapore Police Begin Looking Into Trader Radiant World
Singapore’s police has begun looking into Radiant World, adding to US probes initiated after some of the iron ore trader’s counterparties raised concerns about allegedly falsified documents.
A spokesperson for the Singapore Police Force said the move came after reports were lodged against the trader. No further details were immediately available on the reports or the timeline of any inquiry.
Radiant World has been under pressure in recent weeks after Bloomberg reported that several major commodity traders had moved to cut ties with company amid concerns that it had provided invoices or other documents to its banks that weren’t valid.
CapitaLand and IOI Close to Buying Singapore $1.9 Billion Office Towers, Bloomberg Reports
CapitaLand Investment and Malaysian developer IOI Properties Group are nearing a deal to buy an iconic office development in Singapore’s commercial center, according to people familiar with the matter, Bloomberg reported,
The Temasek Holdings Pte-backed Singapore property asset manager and IOI are looking to form a joint venture to finalize a transaction for One Raffles Place, the people said, asking not to be identified because the information is private. The property is likely to be sold for just under S$2.4 billion ($1.9 billion), one of the people said.
The development, comprising two office towers with 62 and 38 floors, along with a retail mall, is set to join a spate of commercial real estate assets changing hands as the market revives, supported by low borrowing costs and sellers’ greater willingness to be flexible on pricing.
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