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MCI (P) 129/11/2012 Ref No: SGMN2013_0197 1 of 16
Morning Note
Phillip Securities Research Pte Ltd Singapore
14 October 2013
Weekly Market Outlook Webinar
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Del Monte Pacific Limited (DMPL) announced today that it has entered into a definitive agreement to acquire, through a new subsidiary, the
consumer food business of Del Monte Foods (DMF), a privately-owned U.S. corporation, for US$1.675 billion (subject to certain adjustments at closing). Under the terms of the purchase agreement, DMPL will purchase the brands and certain assets, and assume certain liabilities related to DMF’s consumer food business in the U.S., as well as equity interests in certain South American subsidiaries from DMF. This transaction offers DMPL greater access to a well-established, attractive and profitable branded consumer food business in the world’s biggest market. The transaction is valued at US$1.675 billion and will be financed through a combination of approximately US$745 million of equity in the Company’s new acquisition subsidiary, as well as long-term debt financing of approximately US$930 million that have been committed by a syndicate of bank lenders. As part of the equity financing, the Company plans to issue common and preferred shares in the market. (Closing price: S$0.905, +11.043%) IEV Holdings Limited, a provider of integrated engineering solutions and clean energy solutions, have been awarded three pile grouting and
two free span correction contracts by three engineering, procurement, installation and commissioning contractors. The work program for the pile grouting service covers seven offshore platforms in Malaysia and Indonesia, while the free span correction service will be performed on four pipelines in Indonesia. The Contracts, with aggregate value of approximately USD2.2 million are expected to be completed in 4Q2013. (Closing price: S$0.36, -1.37%) China Yuanbang Property Holdings Limited wishes to announce that its subsidiary, Guangdong Yuanbang Real Estate Development Co.
Limited has incorporated a wholly-owned subsidiary known as Guangzhou Guangfu Property Development Co. Limited (GGPD) in the People’s Republic of China. The principal activity of GGPD is that of residential property development. The registered and paid-up capital of GGPD is RMB10 million. The investment in GGPD was funded through internal resources and is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the financial year ending 30 June 2014. (Closing price: S$0.21, +5.0%) IPC Corporation Ltd would like to announce that the Company has purchased a business hotel in Osaka City, in Japan. The Osaka Hotel, a
13-storey building, has 302 guest rooms, located in the center of the business and commercial district and convenient for both business travellers and tourists. The purchase is partially funded by bank borrowings. The Osaka Hotel shall be leased to Nest Hotel Japan Corporation and renamed as “nest HOTEL osaka shinsaibashi” in February 2014. “nest” is the Company’s brand. The purchase is in line with the Company’s strategy to acquire more income producing assets with the view of having a sustainable income stream. Including the Osaka Hotel, IPC has a portfolio of 9 business hotels in Japan. (Closing price: S$0.155, 0%) Medi-Flex Limited (Company) and Top Glove Sdn. Bhd.(Offeror) wish to jointly announce a formal proposal to seek the voluntary delisting of
the Company from the Catalist of the Singapore Exchange Securities Trading Limited. Oversea-Chinese Banking Corporation Limited, as the Financial Adviser to the Offeror, will make for and on behalf of the Offeror, a cash offer to purchase all the issued ordinary shares (excluding treasury shares) in the capital of the Company, other than those Shares already held by the Offeror, its related corporations or their respective nominees, on the terms and subject to the conditions set out in the Joint Announcement and the Exit Offer Letter. The Directors have reviewed the Delisting Proposal and have resolved to (i) apply to the SGX-ST for the Delisting; and (ii) convene an extraordinary general meeting of the Company to seek the approval of the shareholders of the Company for the Delisting. The Offeror will make the Exit Offer for each Medi-Flex share at S$0.15 in cash. (Trading Halt) RH Petrogas Limited wishes to announce that the SGX-ST has on 11 October 2013 granted its in-principle approval for the listing and
quotation of the proposed placement Shares of up to 116,000,000 new ordinary shares in the capital of RH Petrogas Limited at a placement price of $0.63 per share. (Closing price: S$0.855, -7.065%) Cordlife Group Limited wishes to announce that the Company has on 11 October 2013 received in-principle approval from the SGX-ST for
the listing of, and dealing in and quotation on the Main Board of the SGX-ST, 26,838,000 Private Placement Shares which are to be issued at the Issue Price of S$1.25 per Placement Share to raise gross proceeds of up to $33,547,500. (Closing price: S$1.21, -1.626%) Source: SGX Masnet, The Business Times
Morning Note 14 October 2013
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Morning Commentary
STI: +0.31% to 3179.7 KLCI: +0.55% to 1785.8 JCI: +0.74% to 4519.9 SET: +0.40% to 1457.8 HSI: +1.16% to 23218 HSCEI: +1.15% to 10580 Nifty: +1.25% to 6096.2 ASX200: +1.63% to 5230.9 Nikkei: +1.48% to 14404 S&P500: +0.63% to 1703.2 MARKET OUTLOOK:
Catch the market outlook for the week ahead, and our stock feature of the week – Wilmar – in today’s 11.15am Webinar. Clients can register for the webinar by clicking the link in the “Weekly Market Outlook Webinar” box at the top of this note, or, by going to www.poems.com.sg > Weekly Webinar Market Call by Phillip Research. (PhillipCFDs and ETFs for trading the market outlook can be found in the webinar slides or the Macro Trade report below. Phil lipUT Wrap Account offers tactical asset allocation of unit trusts without front loading sales charge.) SECTOR/STRATEGY REPORTS:
- Sector Reports: Commodities,18 Sep / Banking, 9 Sep / Telecommunications, 9 Sep / Offshore & Marine, 26 Aug - Country Strategy: S’pore, 20 Sep / China & HK 5 July / Thai, 17 Jun - Macro Trader: 9 Sep, Update Source: Phillip Securities Research Pte Ltd
Macro Data
USA: Consumer sentiment in the U.S. fell in October to a nine-month low as the government’s partial shutdown and the debt-ceiling debate
caused outlooks to sour. The consumer sentiment index of decreased to 75.2 this month from 77.5 in September. Economists projected a drop to 75.3, according to the median estimate. Eurozone: German inflation rose 1.4% in September, following 1.5% growth registered the previous month. This result is in line with analysts'
forecasts. On an annual basis German CPI remained unchanged for the second running month in September, as expected. Spain's harmonized CPI plummeted to +0.5% from +1.6%, with a monthly rate of +0.8% (vs +0.2% of August). India’s industrial output growth expanded 0.6% in August from a year earlier, weighed by continued weakness in the manufacturing (down by
0.1% y/y) and mining (down by 0.2% y/y) sectors. The notable weaker pace aggravates government's concern while struggling to reverse a slowdown in the nation. China’s trade surplus narrowed to $15.2 billion in September compared to last month’s $28.6 billion. The diminishing trade surplus was due
to an unexpected drop in exports, as national holiday season fell in September alongside a stronger yuan. Source: Phillip Securities Research Pte Ltd
10/15/2013 Retail Sales Advance MoM Sep 0.00% 0.20% 10/23/2013 Automobile COE Open Bid Cat A 23-Oct -- 8500000.00%
10/15/2013 Retail Sales Ex Auto and Gas Sep 0.40% 0.10% 10/23/2013 Automobile COE Open Bid Cat B 23-Oct -- 9350000.00%
10/15/2013 Retail Sales Control Group Sep 0.40% 0.20% 10/23/2013 Automobile COE Open Bid Cat E 23-Oct -- 9388900.00%
10/15/2013 Retail Sales Ex Auto MoM Sep 0.40% 0.10% 10/25/2013 Industrial Production SA MoM Sep -- -1.40%
10/15/2013 Factory Orders Aug 0.30% -2.40% 10/25/2013 Industrial Production YoY Sep -- 3.50%
Source: BloombergSource: Bloomberg
US Singapore
Economic Announcement
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Important Information
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