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Stocks In Focus SG (Southeast Asia Oil Imports To Double, Linc Energy, Cordlife) – 03/10/13

Southeast Asia’s Net Oil Imports To More Than Double By 2035
According to International Energy Agency (IEA), Southeast Asia’s net oil imports is expected to more than double by 2035, costing US$240 billion at current prices, to meet the strong energy demand growth to fuel the region’s fast-growing economies. Southeast Asia’s total energy demand will rise by more than 80 percent by 2035 to support a near tripling of the region’s economy and a population that will expand by almost a quarter. The region will see a rise in oil consumption to 6.8 million barrels per day (bpd) from the current 4.4 million bpd and a tripling of coal demand over 2011 to 2035. IEA noted that Indonesia and Thailand will lead energy demand in the region, with their net oil import bills tripling to nearly US$70 billion each by 2035. Notably, the power sector, which will need to attract about US$1 trillion of investment, will be a key driver of spending on energy-related infrastructure.

Significance: The strong demand in the Southeast Asia region suggests more robust developments in the mineral, oil and gas sector, with potentially higher capital expenditure in exploration and production activities in the region.

Linc Energy To Shift Australia Listing To Singapore
Linc Energy announced that it will seek approval from shareholders to delist from Australian Securities Exchange and to list immediately on the Main Board of the Singapore Exchange (SGX). The move shows Singapore’s growing attractiveness as a listing venue for early-stage mineral, oil and gas firms and the country’s position as a hub for the international capital market and an emerging regional oil and gas hub. Operating the world’s only underground coal gasification (UCG) to gas-to-liquid (GTL) technology facility, Linc views the listing to be beneficial in unlocking the value of the company’s conventional and unconventional oil, gas and coal assets and its underground coal gasification (UCG) technology to provide benefits for all shareholders. It will also allow the company to ride on Asia’s strong demand for energy, which is growing faster than anywhere else in the world.

Significance: The transition to SGX is expected to improve the company’s access to capital markets and reposition the business to deliver its long-term growth strategy. Linc will be one of the largest independent upstream oil and gas exploration and production companies listed on the SGX and one of Southeast Asia’s largest in terms of production and proved and probable reserves.

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Cordlife Proposes Private Placement To Raise $33.5m
Cordlife Group has proposed a private placement of 26.8 million new shares comprising placement via a placement agent, United Overseas Bank, and placement via direct subscriptions by investors at $1.25 for each placement share. The issue price represents a discount of approximately 4.8 percent discount to the volume weighted average price for trades done on 30 September 2013. The exercise is expected to raise gross proceeds of $33.5 million and net proceeds will amount to $32.1 million. About $23.5 million of the proceeds will be used to further, fund and support its operations in connection with its enlarged geographical footprint, including funding of additional strategic investments, joint ventures, acquisitions and strategic alliances should opportunities arise. The remaining will be used for general working capital purposes. Just last month, Cordlife had bought a 19.9 percent stake in Malaysian cord blood banking company StemLife for $11.5 million.

Significance: The placement will improve Cordlife’s financial liquidity and flexibility that will enable the company to tap on potential opportunities that may materialise as it expands its presence regionally.



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