Wee Hur Clinches $150m Parc Centros Construction Contract
Mainboard-listed Wee Hur Holdings has been awarded a construction contract worth $150 million. The works which will be taken care of by the company’s construction unit, Wee Hur Construction, relate to the building construction for the Parc Centros condominium in Punggol. Parc Centros is a 65 percent-owned joint venture project under the company’s property development arm, Wee Hur Development. The 99-year leasehold property which consists of eight blocks of 16-storey buildings, is already fully sold within three months of its launch in July this year. The firm’s other ongoing construction projects include public and private housing projects as well as its own industrial property development project Premier@Kaki Bukit and residential development project Urban Residences. Chairman and managing director of Wee Hur, Goh Yeow Lian, said, “The group’s property development arm will continue to work hard to bring more construction orders to our construction arm.”
Significance: The latest contract award will enhance Wee Hur’s order book to about $540 million, providing a steady stream of activities through to FY15.
Stratech Systems To Provide Flexible Financing For Product Purchase
Stratech Systems, a world-class advanced technology and e-systems leader, entered into a joint venture with The Garrett Group Asia, a New York-based financial services and advisory firm focused on providing financial solutions to high technology industries. The partnership will see the establishment of Stratech Finance which will handle the promotion of the sales of Stratech Systems products by providing clients with long-term and flexible financing for their purchase. The financing options offered will encompass iFerret™ intelligent airfield/runway surveillance, as well as some of the other intelligent Vision technologies developed by Stratech Systems. Commenting on the joint venture, chairman of Stratech Systems Dr David Chew said, “We are pleased to work with The Garrett Group, who has more than 25 years of experience in equipment finance and a diverse portfolio of financial tools at their disposal. With The Garrettt Group as our partner, Stratech Finance will offer the best financing solutions to address our clients’ needs.”
Significance: With various financing arrangements in place, the alliance will help to accelerate the roll-out of Stratech Systems’ products in markets that the company is looking at.
FDS Networks In Reverse Takeover Deal
In a $165 million arrangement announced on 8 December, FDS Networks Group is proposing to undertake the acquisition of Delta Advanced Materials as part of a reverse takeover move and an attempt to get itself off the Singapore Exchange’s watch list. FDS Networks has been in the exchange’s watch list since June 2010 and its listing status is slated for review in March 2013. Delta Advanced Materials is a Hong Kong-based investment holding company whose subsidiary, Jiangsu Yangtze River Delta Fine Chemical Co, is engaged in the production and sales of a variety of fine chemicals, and owns a research arm, Zhengxin New Material R&D Co. Under the deal, FDS Networks will consolidate every 25 of its shares into one share. 300 million new consolidated shares in FDS Networks at $0.55 each will be issued to the vendors of Delta Advanced Materials and its noteholders.
Significance: Besides the expectation of a new lease of life for FDS Networks, the reverse takeover involves an investment in a profitable entity with significant opportunities for growth and reputable venture capital funds as potential strategic partners.