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The Singapore Market this Week

On Friday, it was announced that shares of commodities outfit Olam International (SGX: O32) will be acquired by an indirect wholly-owned subsidiary of Temasek Holdings, Breedens, and a few other shareholders for S$2.23 apiece.

This sent its shares soaring close to 12% to finish off the week at the offer price. For the entire week, it had even spiked by 18.9%. This made Olam outshine the Straits Times Index (SGX: ^STI), which slumped 2% to close at 3,074 points for the week.

Other than Olam, the conglomerate Jardine Cycle & Carriage (SGX: C07) was the only blue chip to make any weekly gains. 28 other index constituents were in the red with Jardine Strategic Holdings (SGX: J37) being the biggest loser. It lost 4.9% to end the week at US$32.75.

The past five work days have been eventful ones as there were two other companies that had acquisition offers. One was hotel operator Global Premium Hotels (SGX: P9J), which closed at S$0.33, some 17.9% higher than where it was last Friday. On Thursday, Mr Koh Wee Meng, the majority shareholder of Fragrance Group (SGX: F31), had made a cash offer for Global Premium Hotels at the same price – S$0.33 per share – it closed at for the week.

Another company struck with acquisition-fever was nightlife entertainment outfit St. James Holdings (SGX: 5NH). It offered to gobble up Perennial China Retail Trust (SGX: N9LU), or PCRT, at S$0.70 per share by issuing 819.8 million St. James shares at a price of approximately S$1.18 each. The deal comes on the back of St James’ decision to buy S$1.56 billion worth of property assets from a group of sellers. The assets include Chijmes, TripleOne Somerset and the upcoming Capitol Development, among others. Certain assets in China will also be acquired and will, in addition, see St. James buy around 28% of PCRT. The S$0.70 offer is to acquire all the remaining units of PCRT which are not acquired as part of the S$1.56 billion deal.

Shares of St. James were unchanged for the week while Perennial closed at S$0.545, rising 1.9%. Trading activity for Perennial was still halted as of the end of Friday.

The STI is currently trading at 13.4 times its historical earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.