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Singapore Daily Bulletin – 21/12/12

Ezion Makes General Offer For YHM Shares
Ezion Holdings is making a general offer for all the shares in YHM Group at $0.0018 per share, following the completion of a subscription and an option grant, where it acquired 3.2 billion shares and 3.96 billion options in YHM. Each option carried the right to subscribe for one new share at $0.0018 per share. As such, Ezion has a 44.1 percent stake in YHM, triggering a conditional mandatory cash offer. Meanwhile, Ezion said it has no plans to introduce any major changes to YHM’s businesses and intends to keep the company listed.

Significance: Shares of YHM has shot up about three-fold to above $0.03 since Ezion’s proposal to subscribe into YHM on 25 October, suggesting that Ezion intends to transform YHM into an offshore oil and gas services player complementary to Ezion. However, it may be too early to judge if YHM could mirror Ezion’s performance.

GLP Lists J-REIT On Tokyo Stock Exchange
Global Logistic Properties (GLP) announced that the real estate investment corporation (GLP J-REIT) has successfully completed its initial public offering (IPO) in Japan and listed on the Tokyo Stock Exchange, where it has received high levels of demand. GLP is contributing 30 of its properties in Japan to GLP J-REIT for an initial consideration of US$2.6 billion, making it the largest logistics REIT in Japan. It will receive net cash proceeds of approximately US$1 billion, which GLP intends to utilise for investment in China, Japan and other countries. Notably, its assets under management have tripled to US$7.2 billion following its expansion to Brazil in November.

Significance: This transaction has allowed GLP to recycle capital to create and enhance shareholder value and to grow its fund management platform while strengthening its fortress-like balance sheet even more and generating an annuity-like fee revenue stream.

Ryobi Kiso Secures $23m Worth Of Contracts
Leading specialist ground engineering solutions provider, Ryobi Kiso Holdings announced that it has secured contracts worth approximately $23 million, bringing the total contract value secured this beginning of the calendar year 2012 to over $156 million. In its press release, it revealed that some of the recent contracts awarded for foundation and geoservices works include Bukit Batok Bizhub, HDB public housing, Heron Bay, Mandai Depot in Singapore and Tan Hoa (Lo Gam Channel) and Thi Vai (Cai Mep Inter-port Road) in Vietnam as well as Esperance Port Access Corridor in Western Australia.

Significance: Despite the challenging business environment, the company has been steadily winning contracts which is testimony to its strong track record and is continuously reviewing various cost management measures to mitigate the effect of rising operating costs.