Inphyy Corner

Singapore “Flyer” of the Week: AusGroup Limited

By Sudhan P - January 10, 2014

This week’s instalment features AusGroup Limited (SGX: 5GJ). The company flew 32.3% so far this week, closing at $0.25 on Monday.

The firm is involved in the marine and offshore drilling sector. The main business of the company is to provide subcontract services to the oilfield equipment manufacturing companies in the South East Asia region, through its fabrication and machining facility located in our shores.

This week, on Monday, AusGroup made public that it had entered into a conditional placement agreement with DBS Bank Limited (SGX: D05) to strengthen its financial standing. It will place an aggregate of 96,100,000 new ordinary shares at an issue price of S$0.168 per share. This is at a discount of 8.5% from the weighted average price of $0.179 to $0.189, seen on 30th and 31st December 2013.

The placement will raise a total of S$16,144,800. After deducting expenses, S$15.2 million will be raised. Half of this amount will be used for daily operations of the company and the other half will be used to collateralise the firm’s future bonding requirements.

The placement is expected to be concluded by the end of the month.

AusGroup Chief Executive Officer and Managing Director, Stuart Kenny, said, “The placement is a great way to start the year, boosting working capital as we work closely with new and existing customers to target opportunities in a changing market. Our business model is well placed to deliver a suite of integrated skills and services as projects enter long-term operation, following an unprecedented construction period in Western Australia. We also expect to continue increasing our exposure to the growing oil and gas sector in the coming year”.

In December last year, AusGroup announced that it had fully repaid its senior debt facilities and cash-backed all bank guarantees with the company’s club bank facility of ANZ Bank and HSBC Bank.

AusGroup is currently trading close to 11 times its FY2013’s earnings.

Courtesy of The Motley Fool

SingHaiyi joins consortium to aquire TripleOne Somerset

Property Guru – 5 hours ago

SGX-listed SingHaiyi Group has announced that it will take a 20 percent stake, valued at S$66 million, in a consortium acquiring TripleOne Somerset for S$970 million.

This is the company's first investment in Singapore commercial property.

SingHaiyi TripleOne (SHTPL), a wholly owned subsidiary of SingHaiyi, has inked a letter of participation with Perennial Real Estate Holdings (PREH) to participate as the consortium's second biggest shareholder.

Notably, PREH is leading the TripleOne Somerset acquisition from Gorgeous International Limited.

With a total gross floor area of around 766,550, the 17-storey property comprises two office towers with two floors of retail space and is located adjacent to the Somerset MRT Station in the prime Orchard Road shopping precinct.

SHTPL's participation in the project – through a combination of redeemable and nonconvertible junior bonds, ordinary shares and preference shares in Perennial Somerset Investors - will be financed by SingHaiyi's internal resources or by other sources as deemed appropriate by the Board from time to time.

SHTPL has already paid a deposit of S$9.7 million, while the remaining S$56.3 million will be paid upon completion of the acquisition, which is expected to take place on 31 March 2014.

The acquisition is in line with the SingHaiyi's plan to look into various investment opportunities with recurring income. The company expects the investment to enhance shareholder value while allowing the Company to leverage on the established commercial property investment and management track record of PREH.

Meanwhile, the company will appoint a representative to be part of the Project Management Team for the Asset Enhancement Initiatives works, which aims to enhance the value of the prime retail and office development by increasing its retail offerings.

CCM Group restructures board, reviews core businesses

www.businesstimes.com.sg/premium/compani...-businesses-20140110

Unionmet (Singapore) reports widening losses, seeks to diversify business
www.straitstimes.com/breaking-news/money...sify-business-201401


Unionmet (Singapore) to raise $23 million from rights issue priced at 7.5 cents apiece
www.straitstimes.com/breaking-news/money...d-75-cents-apiece-20

Goldman countersues two S'pore investors

business.asiaone.com/news/goldman-counte...-two-spore-investors

Ezra Holdings: Continued operational improvement in subsea business
www.ocbcresearch.com/pdf_reports/company/Ezra-140113-OIR.pdf