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Singapore Daily Bulletin – 17/01/13

Simon Cheong’s Offer Accepted By Wheelock
In a surprise move by Wheelock Properties (Wheelock) to sell its entire 17.9 percent stake to Simon Cheong, the chairman and chief executive of SC Global Developments has succeeded in his bid to take the luxury developer private. In a statement released yesterday, Wheelock announced that it was disposing its stake in SC Global in light of new investment opportunities and market developments, and will re-invest the proceeds in alternative projects in due course. This acceptance of Cheong’s offer by Wheelock took his stake in SC global to 90.36 percent. As Wheelock is no longer a shareholder, SC Global could now potentially avoid having to fork out up to $72 million in penalties for its remaining unsold units. On 5 December 2012, Cheong launched his voluntary unconditional cash offer for SC Global’s shares at $1.80 a share, stating that an unlisted company would have more flexibility if it did not have to report results on a quarterly basis. Cheong’s offer has been extended by a further 14 days to 30 January 2013.

Significance: The public float is now 9.64 percent, which is below the 10 percent threshold to maintain a listing on the exchange. Shareholders who do not accept the offer can wait for the court-sanctioned compulsory acquisition process. In line with the Takeover Code, Mr Cheong will be able to compulsorily acquire the remaining shares he does not already own.

Golden Agri Makes It To Global Challengers List
Golden Agri-Resources (Golden Agri), is among a list of 100 fast-growing and fast-globalising companies from emerging markets to make it to the Boston Consulting Group (BCG) 100 Global Challengers list for 2013. Michael Meyer, BCG partner and co-author of the report which featured the list said challengers from South-east Asia are riding on the trend of rising consumers and accelerating private consumption in emerging markets. BCG feels that on a global basis, challenger companies, where many are not as widely known or heard of in the west are outpacing the household names in the US and Europe and even surpassing the Standard & Poors’ 500 companies in terms of jobs and revenue generation over the past five years. Meyer expects a growth rate of 19 percent for ASEAN in private consumption in the next five years as compared to the 2006-2011 period.

Significance: Golden Agri’s joint venture with US and Denmark-based tanker operator Stena Weco to transport its palm oil products internationally highlights an important strategy to drive growth by forging partnerships with companies from developed markets. This will likely open more doors geographically for Golden Agri’s products.

Looking For A Bigger Market Share Slice In Singapore; Asia Medic
Asia Medic, Catalist listed one-stop health screening and diagnostic healthcare provider is set to look for a bigger piece or market share slice in Singapore. Based on its recent turn around seen in its financial results, things are looking to be on track for Asia Medic. It reported a $0.81 million loss in FY11, but for 1H12, it reported a $66,000 profit, which was very much decent compared to a loss of $0.552 million in 1H11. It also saw better revenue growth and has a healthy cash and cash equivalents of $9.3 million as at 30 June 2012. It is looking for opportunities to serve the higher market segment in Singapore, which will target services which can deliver big chunks of revenue, and did not rule out acquisitions as a means of growing its operations in Singapore. Asia Medic will expand its medical centre in Shaw House by 8,000 square feet this year, from its 11,000 square feet currently. It will be taking up another floor and offering more current services and new services. Asia Medic is also expanding its reach geographically. It is working towards opening an advanced imaging centre in Myanmar this year via a joint venture.

Significance: In its positive bid seen in Asia Medic’s turnaround from a loss in FY11, to the plans it have in the region, Dr Wong Weng hong, chief executive of Asia Medic stressed that it is important for the company to find a niche where it can run for the long term, which will then fuel the long term growth of Asia Medic.