Company News

Frasers Centrepoint Ltd (FCL) has made its off-market offer to acquire Australand Property Group. FCL is giving cash of A$4.48 (S$5.29) for each stapled security in a deal that values the Australia-listed firm at about A$2.6 bn. FCL added that the "transformational transaction" will yield significant benefits to the firm. This includes a substantial increase in FCL Group assets and profits from outside Singapore; increasing its recurring income streams and thus improving FCL's earnings sustainability; giving FCL a platform with immediate scale in Australia, a core market for FCL; and helping FCL gain ownership of an "attractive" commercial and industrial portfolio with significant development capabilities. Scheduled to last between July 7 and Aug 7, the offer has to be approved by at least half of Australand's shareholders and the Foreign Investment Review board in Australia.

Keppel Corp’s O&M's wholly owned subsidiaries Keppel Shipyard and Keppel Singmarine have secured contracts worth a total of S$368m. The contract secured by Keppel Shipyard is for the conversion of a Floating Production Storage and Offloading (FPSO) vessel for Bumi Armada to support its Kraken project. Work has commenced and the FPSO is scheduled for delivery in 3Q 2015. Keppel Singmarine has secured a contract from its 10%-owned associate, Baku Shipyard to design and carry out fabrication and outfitting works for a Subsea Construction Vessel (SCV). These contracts lifted Keppel Corp's YTD win to S$2.24bn, forming 37% of our full year assumption of S$6bn. We believe Keppel is on track to meet our expectation. When the recently signed FLNG project for Golar becomes effective, it will add another S$700-800m to its orderbook. Maintain BUY; target price: S$12.60.

IHH Healthcare, the largest private hospital operator in Asia and second largest in the world in terms of market value, plans to bump up its number of licensed beds from 6,000 now to 9,000 in three years and 10,000 by 2018. IHH's managing director and chief executive officer Mr Tan See Leng said in an interview with The Business Times.

TEE International has won a contract worth RM178.8m to build and complete MDIS’ proposed new campus in EduCity Iskandar Malaysia, Nusajaya, Malaysia. The project is for a duration of 18 months.

In property news, the industrial plot at Woodlands Avenue 12 garnered conservative bids which fell below market’s already-modest expectations at its tender close yesterday. Wee Hur Holdings trumped four other bids with its offer of $76.9m, which works out to $72.85 psf ppr. Consultants had estimated a winning bid of $80 to slightly below $100 psf ppr. The site can yield about 1 million sq ft of industrial space and can be potentially developed into 550 to 650 strata units.