Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) inched down by 0.07%, or 2.1 points, to 3,139.3. Of the 30 index components, 15 were in the red; 11 finished in the green while the remaining four were flat.
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Golden Agri-Resources Ltd (SGX: E5H) shares emerged as the worst performer of the index, falling 2% to S$0.24 apiece.
On the other hand, the biggest winner of the STI was Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). The shipbuilder’s shares went up 1.8% to S$1.11 each.
Yesterday, Yangzijiang announced that it has agreed to establish a 50-50 joint venture company with Mitsui & Co, Ltd in the Republic of Panama with an initial registered share capital of US$13.2 million. Yangzijiang mentioned in its announcement that the new company aims to “satisfy the diversified needs of our global customers through delivery of top-notch quality and performance vessels.”
2. Sembcorp Industries Limited (SGX: U96) revealed before the market opened today that it has signed a long-term solar energy deal with social media giant, Facebook.
Under the agreement, Sembcorp will provide locally-sourced renewable power to support Facebook’s newest data centre in Singapore, as well as its other Singapore operations, for the next 20 years. The data centre is also Facebook’s first in Asia.
Bobby Hollis, head of global energy at Facebook, commented:
“This agreement represents our first step towards supporting our Singapore Data Center and local offices with 100% renewable energy.
We are thrilled to have Sembcorp as our partner on this project and excited to see the continued acceleration in the growth of the renewable energy market in Singapore.”
Sembcorp shares ended the day at S$2.90, up 1.4%.
3. OUE Lippo Healthcare Ltd (SGX: 5WA) is further expanding its healthcare business in the Pan-Asian region.
The healthcare outfit is looking to acquire a 10.63% stake in First Real Estate Investment Trust (SGX: AW9U). It has also announced its plans to buy a 40% stake in Bowsprit Capital Corporation Limited, First REIT’s manager. The remaining 60% will be purchased by its parent company, OUE Ltd (SGX: LJ3).
The following chart summarises the transaction structure before and after the acquisitions:Source: OUE Lippo Healthcare Ltd’s presentation on the proposed acquisitions
Lee Yi Shyan, chairman of OUE Lippo Healthcare (OUELH), said:
“The Proposed Acquisitions will bring three key benefits to OUELH’s long-term strategic goals. Firstly, they enable the Company to diversify into a key healthcare market such as Indonesia. Further, they fit well with our asset-light growth model and thirdly, they are earnings accretive, which enhances shareholders’ value.”
To fund the acquisitions, OUE Lippo Healthcare is launching a 1-for-1 renounceable underwritten rights issue to raise around S$150 million.
Shareholders of OUE Lippo Healthcare have to approve the proposed acquisitions at an extraordinary general meeting to be convened.
As of the time of writing, the shares/units of the three listed parties involved in the deal were halted from trading.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Facebook and units of First Real Estate Investment Trust. Motley Fool Singapore contributor Sudhan P owns shares in Sembcorp Industries Limited.