Keppel Corporation’s Unit Wins $103m In Contracts
Keppel Corporation’s subsidiary, Keppel Shipyard, announced that it has won three conversion contracts worth a total of $103 million from PTSC Asia Pacific, Perenco Group and BC Petroleum. The contract from PTSC Asia Pacific was for the conversion of a tanker to a floating production storage and offloading (FPSO) unit, which is scheduled for completion in 3Q13, and will be deployed in the Thang Long and Dong Do oil fields that are located in the Cuu Long Basin, offshore Vietnam. The second contract, awarded by Perenco Group, is to convert a tanker to a floating storage and offloading (FSO) unit. Work will start in 3Q12 and will complete in the first quarter next year. The converted unit, to be called FSO Mayumba, will be stationed in the Lucina field, offshore Gabon. The last contract from BC Petroleum is for the modification and upgrading of a tanker to an early production vessel, to be named EPV Balai Mutiara. When completed, the vessel will be deployed in the Balai Cluster oil fields, offshore Malaysia.
Significance: While the contracts are not expected to have a material impact on Keppel Corporation’s earnings this current financial year, it is expected to generate a steady income stream in the near future.
DBS’ Bid For Indonesian Bank Likely To Go Through
According to Fitch Ratings, DBS Group Holdings’ US$7 billion bid for Bank Danamon Indonesia will probably go through under the country’s new bank ownership rules. DBS offered on 2 April to buy 67 percent of Danamon from Temasek Holdings as well as equity held by minority shareholders, for 66 trillion rupiah ($8.7 billion). Mark Young, head of the Asia-Pacific Financial Institutions group at Fitch Ratings, said that “there’s no reason to suggest that the Danamon deal will not go through” as the new rules give “sufficient flexibility”. Indonesia’s central bank said last week it will restrict banks’ ownership of local lenders to 40 percent, granting exemptions if the acquirer meets certain criteria in areas such as corporate governance and financial strength. Meanwhile, a spokeswoman for DBS noted that the bank will be reviewing the regulations carefully and work closely with Bank Indonesia on next steps.
Significance: The successful take over for the stake in Bank Danamon Indonesia will bring substantial benefits and synergies for both banks as well as allow DBS to tap into the growing market in Indonesia.
JB Foods Makes Strong Debut
Malaysian cocoa-ingredient producer JB Foods made a strong debut on the Singaporean market yesterday, opening its mainboard trading at $0.41, then shot to $0.42 for an intraday gain of 40 percent before pulling back to end at its day low of $0.33, at 10 percent higher than its initial public offering (IPO) of $0.30 apiece. The counter was the most actively traded stock yesterday, with 152.4 million shares changing hands for a value of $58.4 million. JB Foods’ invitation shares were subscribed about five times and the company raised net proceeds of $23 million from the IPO’s 84 million new shares. It has set aside some $8.3 million for the purchase of production equipment and machinery, and finance the construction of a factory and a warehouse in Malaysia to boost its production capacity. JB Foods plans to distribute at least 30 percent of its net profits for FY12.
Significance: JB Foods’ chief executive officer Tey How Keong noted that the listing will allow the company to expand regionally, “capitalising on possible growth opportunities in China, India, South-east Asia and Eastern Europe”.