Stocks In Focus SG (Aspial Corp, Ezion Hldgs, Soilbuild Construction) – 03/01/14

Aspial In First Overseas Foray

• Aspial Corporation, through its subsidiary WCL-King (Vic), has entered into an agreement to acquire a property located at 383 King Street, Melbourne, Victoria, Australia for A$41.5 million.

• The property is a commercial development comprising ground level and nine upper office levels, with two levels of basement car park.

• The property, located 300 metres from the Flagstaff Railway Station, possesses a freehold tenure with a lettable area of approximately 13,136 square metres.

Significance: Aspial believes the property, which has the potential for redevelopment into a retail, office and residential use development, presents an excellent investment opportunity.

Ezion To Acquire Jack-Up Rig

• Ezion Holdings proposed the purchase of the entire issued share capital of Teras Conquest 4 for US$32.5 million ($41.2 million)

• Teras’s sole asset is a multi-purpose self-propelled jack-up rig which is presently under a six-year chartering contract, which commenced in February 2012, to Ezion.

• The purchase price will be satisfied via an issuance of 18.4 million shares, at $2.2407 each, in Ezion.

Significance: The transaction would enable Ezion to better position itself for subsequent renewal of the charter contract. On a pro forma basis, the acquisition would have pushed Ezion’s FY12 consolidated earnings per share from US$0.0954 to US$0.0991.

Soilbuild Construction Secures Fourth Project At Changi Business Park

• Soil-Build (Pte.) Ltd, a BCA A1-graded construction company wholly owned by Soilbuild Construction Group, has been awarded a $26.8 million contract by Soo Kee Jewellery Group to construct their corporate headquarters.

• The proposed project entails a seven-storey industrial building with basement carpark lots at the Changi Business Park Vista. This new building will serve as the regional research and design hub for Soo Kee Jewellery.

• Construction is expected to commence by January 2014 and be completed by second quarter of 2015. Correspondingly, over the course of the next 24 months, the project will bring Soilbuild Construction’s latest order book to $389.5 million to date.

Significance: The project, its fourth at Changi Business Park, is not expected to have any material impact on Soilbuild Construction’s net asset value and consolidated earnings per share for the financial year ending 31 December 2014.

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