UPP To Establish Myanmar JV
Further to its previous announcement in May 2012, UPP Holdings announced today that its subsidiary, UPP Greentech, has entered into a joint venture agreement with Myan Shwe Pyi (MSP). The joint venture company, Kanaung Engineering, which will be incorporated in Myanmar, will engage primarily in excavation, drilling and blasting works in support of major infrastructure projects in the country. UPP has agreed to inject US$14 million in cash into the joint venture company as its foreign capital contribution to the joint venture. At the same time, MSP, UPP’s joint venture partner, will contribute assets as capital in kind worth approximately US$6.9 million. Consequently, UPP will hold a majority interest of 67 percent in the joint venture while its partner, MSP, will hold the remaining 33 percent stake. In its statement, UPP said that although it is not required to inject further capital into the joint venture for the time being, it feels the joint venture will be involved in capital-intensive business. As such, it intends to review the capital requirements of the joint venture should the company call for further contributions from its shareholders.
Significance: The signed joint venture agreement is another milestone reached by UPP in realising its strategy to pursue investments and opportunities in countries such as Myanmar.
Cambridge Industrial Trust In $41m Property Acquisition
The manager of Cambridge Industrial Trust (CIT) announced that it had entered into an agreement with Eurosports Auto to acquire the property located at 30 Teban Gardens Crescent on 4 July 2012. The purchase price of $41 million includes the 3-storey industrial building with a single storey factory cum car showroom and a brand new annex block of a 2-storey showroom which will be completed by Eurosports. The gross floor area of the property is expected to reach approximately 12,922 square metres upon completion of the building works. Chris Calvert, chief executive officer of CIT’s manager said that the high quality asset will help to strengthen and diversify the Trust’s portfolio. The asset is also expected to improve CIT’s average lease to expiry from 3.2 years to 3.3 years as at 31 March 2012.
Significance: CIT’s manager intends to finance the acquisition cost with a combination of equity and debt facilities. Investors should take note that as the acquisition is expected to only complete around December 2013, relevant financing efforts for the acquisition will thus be disclosed in subsequent announcements.
IHH Healthcare Brings Back Parkway In Giant IPO
After nearly two years since its delisting, Parkway is coming back to the Singapore Exchange (SGX) with a bang. This time, Parkway will be part of a consolidated entity, IHH Healthcare, which counts Singapore, Malaysia and Turkey as its major bases of operations. The private healthcare provider, IHH, will be seeking a dual and concurrent listing on the Bursa Malaysia as well as the SGX – the first of its kind in these two markets. Registration for shares has already opened and will close on 11 July 2012 at 5pm. The indicative price of the Singapore IPO is $1.18 apiece with final pricing being realised on 12 July 2012 and trading to commence on 25 July 2012. IHH currently operates more than 4,900 beds in 30 hospitals, with more than 3,300 more beds in the pipeline over the next three to five years. In Singapore, IHH – through Parkway – currently operates four private hospitals (including the newly launched Mount Elizabeth Novena Hospital). IHH will be offering 140.6 million shares for its Singapore listing with 52 million shares open to retail investors in the country.
Significance: With the large number of beds in the pipeline, IHH has vast potential for growth should all of them come online. With its operations in high-growth markets, IHH is in good stead to ride Asia’s medical tourism wave.