Fu Yu Corporation

The proposed selective capital repayment (SCR) exercise by Fu Yu Corporation to privatise its Bursa Malaysia-listed subsidiary, LCTH Corporation, is "not fair, but reasonable", said independent adviser Mercury Securities in a circular. It is recommending that entitled shareholders vote in favour of the deal at an extraordinary general meeting in March.

"We are of the view that the proposed SCR is not fair in view that the SCR cash amount of 58 sen is lower than the value per LCTH share of 64 sen," said Mercury. However, it views the offer as reasonable due to various factors, including the fact that the shares are illiquid and there has been no alternative offer.

Global Yellow Pages

Global Yellow Pages (GYP) yesterday proposed a share placement and rights issue to finance the purchase of a plot of land in New Zealand.

It said it is proposing to place out 24 million new shares to non-executive chairman Mah Bow Tan at an issue price of 20 cents apiece. This will amount to a total of $4.8 million.

It is also proposing to undertake a renounceable non-underwritten rights issue of up to 62.27 million new shares, at an issue price of 20 cents each, on the basis of one rights share for every five existing shares.

Proceeds from the placement shares and rights issue will be used to finance the purchase of land, along with internal cash and external sources of funding.

GYP had in September said it signed a conditional agreement to buy a plot of land in Papakura, New Zealand, from Motleon, a firm that does land development and subdivision, for NZ$38 million (S$36.5 million).

World Class Global

Developer World Class Global has sunk further into the red as it posted a full-year net loss of $9 million, from $6.3 million a year ago.

The overseas real estate arm of Aspial Corporation said the loss was mainly due to an increase in employee benefits, listing expenses incurred with respect to its initial public offering, and higher holding costs incurred for properties held for sale in Malaysia. World Class Global, which has a presence in Australia and Malaysia, was listed on the Catalist board of the Singapore Exchange last June.

The group did not record any revenue from the sale of development properties as none of its projects were completed and handed over to purchasers last year. The group expects to receive more than $700 million of sales proceeds when completed development units are handed over to the purchasers.