SATS Acquires 40%-Stake In Saudi In-Flight Caterer
SATS has completed its purchase of 40%-interest in Adel Abuljadayel Flight Catering (AAFC) for US$18.5m. Notwithstanding its services to international carriers such as Cathay Pacific Airways and Malaysia Airlines, the Saudi-based AFFC primarily focuses on private jets and Hajj charters. With revenue for last year totaling US$11m, AAFC currently has two catering facilities located at King Abdulaziz International Airport in Jeddah and King Khalid International Airport in Riyadh which together deliver a daily production capacity of 8,000 meals.
Significance: SATS’ minority stake in AFFC marks its first foray into the Middle East region. This acquisition is the second in less than six months, following closely to its earlier purchase of 50.7%-stake in Japan-based TFK Corporation, and showcased its hunger for expansion opportunities.
Mapletree Commercial Trust Put Up Weak Trading Debut
Mapletree Commercial Trust (MCT) made a less than impressive trading debut yesterday. The counter opened at $0.89, traded in a range of $0.875 to $0.90 and closed flat at its initial public offering (IPO) price of $0.88 per unit. With an initial portfolio of three properties worth $2.8b, including the crown jewel Singapore’s largest mall VivoCity, and a projected yield of 5.7% for the year ending 31 Mar, the trust could have suggested a heightened interest. Furthermore, the trust’s placement tranche of 548.1m units was well-received by institutional investors from Asia and Europe which resulted it to be about 9.1 times subscribed.
Significance: The lack of uplifting impetus amidst the continued challenging economic backdrop has proved to be a drag on recent IPOs. Spotlight will soon fall on Perennial China Retail Trust, which is slated to re-launch its IPO next month, if it can achieve breakthrough from the lacklustre performance pattern.
Listing Of PCCW Unit Snubbed In Hong Kong, Sets Eyes On Singapore
PCCW’s plan to spin off its telecoms business and list it as a business trust has been rejected by the Hong Kong Stock Exchange (HKEX). The disappointing news could force the company to shift its plan to Singapore as such structures are allowed on local bourse. PCCW’s chairman Richard Li has made numerous attempts to reorganise the telecoms business. In 2006, he first tried to sell the telecom and media assets but was subsequently blocked by state-owned China Netcom, a 20% stakeholder in the company, citing worries about the phone infrastructure falling into foreign hands. Later in 2009, his move in trying to privatise the telecoms business was blocked by the Hong Kong’s Court of Appeal after Hong Kong’s Securities and Futures Commission intervened saying there was evidence that the shareholder vote had been manipulated by the company.
Significance: The recent listing of Hutchison Port Holdings Trust on the Singapore Exchange (SGX) had sparked off intense debate among the Hong Kong community. The race between the two island states in becoming Asian financial capital has long been well-known, celebrations will be teeming if SGX were to successful lure another high-profile listing under the nose of HKEX.
This article is contributed by Shares Investment. Visit Sharesinv.com For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment