SGX Watchlist Welcomes Four Counters
After reporting three loss-making consecutive years, four new counters have been entered into the Singapore Exchange’s (SGX) watchlist. These counters have failed to keep their 120-day average market value above $40 million as data compiled by the Business Times shows. These four new entrants are Youcan Food International, Texchem-Pack Holdings, Federal International and China Powerplus. The watchlist was set up in March 2008 to provide more market transparency to the masses. Usually, when a counter is placed in the watchlist, it has two years to turn the business’s financials around or risk being delisted by the exchange. Removal from the watchlist requires a pre-tax profit for a counter’s latest full financial year as well as maintaining a market value exceeding $40 million. If however, the counter meets only one of these two criteria and has a healthy operating cashflow, it can seek an extension of up to a year after its two year deadline.
Significance: With views that a drawn out slump is on the economic cards, it has become apparent that the SGX watchlist could swell should the slump continue till the end of 2012.
SingTel Announces Reorganisation And US$321 million Acquisition
Singapore Telecommunications (SingTel) has announced a new organisation structure to capture emerging opportunities amidst rapidly evolving customer usage behaviour and preferences. SingTel will seek to leverage on its scale of 400 million customers as well as strong customer relationships and knowledge to develop and propel relevant and differentiated services to customers and drive growth in this new age. The new corporate structure will entail three units; the Group Consumer, the Group Digital Life and the Group ICT. Separately, SingTel has signaled its intention to acquire US-based Amobee, a premium provider of mobile advertising solutions to operators, publishers and advertisers globally for approximately US$321 million. The deal will help expand SingTel’s presence in the fast-growing mobile advertising and marketing industry. Through the acquisition, SingTel also has plans to enable advertisers to better reach their target market and deliver relevant offers, rewards and promotions to customers.
Significance: SingTel has seen its profit slip on the back of stagnation in its traditional mobile telephony business. With the acquisition, the local telco seems intent to being a game changer in delivering a next generation relationship marketing tool for advertisers. Thus, SingTel is poised to capture the growth of the mobile advertising market.
Ezra Gains Pace In Race For US$2b Order Book
Ezra Holdings, a global offshore contractor and provider of offshore solutions to the oil and gas industry has announced contract wins worth a total of approximately US$131 million. Ezra’s new rebranded fabrication division, TRIYARDS, has been awarded a contract worth US$76.5 million for a client based in the Asia Pacific. The contract entails the fabrication and delivery of a self-elevating mobile offshore platform/unit. Separately, Ezra has also reported a contract win by its subsea division, EMAS AMC, worth US$55 million from Statoil for work in the North Sea. Lionel Lee, managing director of Ezra opined that the continued stream of new contract wins across the globe was testimony of the success of Ezra’s internationalisation strategy.
Significance: Since the acquisition of Aker Marine Construction to form EMAS AMC, Ezra’s order book has seen a steady rise to almost US$2 billion in a year. This push has afforded some earnings visibility for the near term and could propel Ezra’s financial report card in the short and medium term.