Forterra Trust To Sell Central Plaza For US$266.7m To Fund Development
Forterra Trust, formerly known as China Treasury Trust, announced that it has entered into a conditional share purchase agreement for the sale of Central Plaza for US$266.7 million (equivalent to RMB1.7 billion or $333.5 million). According to Forterra, the expected net cash proceeds of US$127.3 million will underpin the execution of its stated strategy of providing all necessary resources, including financial, to ensure the successful completion of The HQ, Forterra’s landmark mixed-use office and retail development in Shanghai. Accordingly the Trustee-Manager also restates its earlier commitment that no further acquisitions will be made until The HQ is completed, rental revenues are stabilised and liquidity is normalised.
Significance: The sale signifies Forterra’s commitment to optimising value for unitholders through an ‘acquisition-enhancement-divestment’ strategy that represents a significant return on investment. Subsequently, Forterra’s net asset value per unit has also been raised from $4.44 as at 31 December 2012 to $4.53 per unit as an outcome of this transaction.
Matex To Raise $1.4m In New Share Issue
Matex International, a leading manufacturer and formulator of specialty chemicals for the global textile industry, announced that five subscribers have agreed to buy 25.5 million of its new shares at $0.0563 each. The subscribers are Tan Chin Tuan, Goh Yew Tee, Tan Ah Ee, Ho Siow Poh and Seah Cheng Heng. Except for Mr Seah who will own 2.1 percent of Matex after the subscription exercise, the rest will hold a 2.4 percent stake each. The new shares represent about 13.5 percent of Matex’s issued and paid-up share capital and about 11.9 percent of its enlarged issued share capital. The subscription is expected to raise gross proceeds of about $1.4 million.
Significance: The issue price of $0.0563 represents a discount of 10 percent to the weighted average price of $0.0625 for trades done on the SGX-ST for the full market day on 5 April 2013. Matex also stated that the rationales for issuing the subscription shares are to strengthen its working capital as well as to increase the liquidity of the shares in the market.
Midas Awarded $17.3m In Orders From Alstom Transport
Midas Holdings announced that its subsidiary Jilin Midas Aluminium Industries Co has been awarded orders totalling $17.3 million (approximately Rmb86.5 million) from Alstom Transport S.A to supply train car body module components for new trains on the Singapore North East Line (NEL) and Circle Line (CCL). According to Midas, it will supply train car body module components for 18 train sets (1 train set = 6 train cars), or 108 train cars for the NEL, and 24 train sets (1 train set = 3 train cars), or 72 train cars for the CCL. “Since 2004, we have successfully secured contracts to supply large section aluminium alloy profiles to manufacture body frames for the Singapore Downtown Line Project and Circle Line Project amongst others. We are pleased to have been awarded these orders from our long-standing major customer Alstom, testament to Jilin Midas’ technical capabilities both at home and abroad,” said Patrick Chew, Chief Executive Officer of Midas.
Significance: Delivery is slated to take place progressively from 2013 to 2015. More importantly, these orders are expected to contribute positively to Midas’ financial performance for FY13 to FY15.