Here are some stocks that saw interesting developments in the past week.
Dasin Retail Trust (SGX: CEDU)
This China retail real estate investment trust (REIT) halted trading to announce the launch of a private placement to raise up to S$68.8 million. The new units will be issued at S$0.836 per new unit, around a 3% discount to the market price of S$0.86 before the trading halt.
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Approximately S$61.3 million of the money raised will be used to fund the purchase of Doumen Metro Mall, with the remainder used to pay for expenses and fees related to the placement and acquisition.
The private placement, if fully subscribed, seems to be decent for existing unitholders as the new units are at a discount to book value and are only a slight discount to the prevailing market price. The new units also have a low indicative yield of 4.5% based on annualised first half 2019 distribution, excluding the distribution waiver by its two largest shareholders.
BreadTalk Group (SGX: CTN)
The food and beverage company, which owns brands such as BreadTalk, Toast Box, and Din Tai Fung, announced that it would buy the entire stake in food court operator, Food Junction Management, for S$80 million. The purchase price is around 6.5 times Food Junction’s net asset value of S$12.3 million. Food Junction also reported measly earnings of S$3,183 in the half-year ended 30 June 2019.
The purchase will be funded with 60% debt and 40% cash, likely increasing BreadTak’s net debt to asset ratio from 0.25 to 0.7 times.
My colleague, Royston Yang, shared his thoughts on the proposed deal here.
IHH Healthcare Bhd (SGX: Q0F)
IHH Healthcare Bhd, which operates local private hospitals such as Gleneagles and Mount Elizabeth, announced its results for the second quarter of 2019. There was some good news for the group as revenue for the three months soared 37%, while its EBITDA (earnings before interest tax and depreciation) rallied 47%.
However, profit attributable to shareholders (excluding one-off items) fell 6%. IHH’s managing director and CEO, Dr. Tan See Leng, said:
“Our proactive steps to pare down non-Lira debt for Acibadem has reduced the impact of forex volatility on our earnings. In Greater China, we continued to ramp up Gleneagles Hong Kong and look forward to the opening of Gleneagles Chengdu and Gleneagles Shanghai over the next 18 months.”
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. Motley Fool Singapore contributor Jeremy Chia does not own shares in any companies mentioned.