Noble’s Subsidiary Receives Green Light For the Merger With Yancoal Australia
Shareholders of Noble Group’s 64.5 percent owned subsidiary, Gloucester Coal received the green light for the A$2.05 billion ($2.55 billion) merger with Yancoal Australia, a unit of China’s Yanzhou Coal Mining Company. The deal, which involves Yancoal Australia absorbing Gloucester, such that Gloucester shareholders will hold 22 percent of Yancoal and Yanzhou will hold the remaining 78 percent, will create Australia’s largest listed pure coal play. On Noble’s current developments, the commodities trader had acquired all of Indonesia’s PT Kaltim Bio Energy for US$2.57 million and established Noble Mansfield Renewable Energy as a 50 percent owner in the United States. Meanwhile, Noble dissolved wholly owned subsidiaries in the chemical sector in Hong Kong, Turkey, and the United States. It is also exploring a sale of its Brazil liquid bulk terminal and storage facility provider Terminal Maritimo do Maranhao.
Significance: Noble highlighted that the Gloucester disposal is part of its strategy of “recycling” assets, through which the company buys and develops assets along the various supply chains then sells them later to realise its investments and free up capital for further investments.
OKP Bags $7.5m Contract
Leading infrastructure and civil engineering firm, OKP Holdings has won a $7.5 million contract under its subsidiary, Eng Lam Contractors, from the national water agency, PUB. The contract entails improving drains around the Queen Astrid Park, Benoi Road and Wan Lee Road areas, which is scheduled for completion around August 2013. OKP’s scope of works will include the construction of varying lengths of drains, box culverts in various areas under improvement and to raise the existing road levels. Separately, OKP was also awarded $4.9 million contract for works in Stamford Canal at Orchard Road recently. This contract win will be OKP’s third public sector project in 2012 thus far. OKP’s total gross order book to date stands at $336.3 million based on secured civil engineering and construction contracts, with some of the projects stretching up to 2015.
Significance: OKP noted that its maintenance arm helps to strengthen the company’s overall operations, providing a continual and stable income stream. Furthermore, the contract win provides an affirmation to its expertise in such projects as well as its ability to maintain cost-efficiency.
Tiger Airways Finalises 40%-Acquisition In Southeast Asian Airlines
Tiger Airways Holdings has finalised an agreement to acquire a 40 percent stake in Philippines-based Southeast Asian Airlines (SEAir), which will be held through wholly owned subsidiary Roar Aviation II. The acquisition cost will be US$7 million, less liabilities to be confirmed in a due diligence review.
Meanwhile, the completion of investment is subject to conditions including obtaining the regulatory approvals of the Philippine authorities. This will mark Tiger’s second joint venture in Asia. Previously, it had acquired a 33 percent stake in Mandala Airlines in Indonesia. Going forward, the company also plans to grow its fleet to five aircraft this year with the addition of three A320s.
Significance: The investment in SEAir will not only enable Tiger to leverage on the strength of its Singapore base and scale up the size of its business across the Asia-Pacific region, which is one of the fastest growing areas in air travel but also tap into the large potential market in Philippines.