Stocks to watch: First Sponsor, Lian Beng, CapitaLand, CDL

The Singapore Exchange Centre in Shenton Way. ST PHOTO: DESMOND WEE

SINGAPORE - These companies have seen new developments that may affect trading of their shares on Tuesday (March 19):

First Sponsor Group: Property player First Sponsor Group has withdrawn its application for a rights issue involving warrants exercisable into convertible securities, after receiving regulatory feedback regarding the suitability of the warrants for distribution to retail investors. The warrants - proposed in a Feb 14 filing - would have been exercisable into convertible securities, which would in turn be convertible into conversion shares. First Sponsor will be reconsidering the structure of the exercises.

Lian Beng Group: Property player Lian Beng Group's wholly owned subsidiary Deenn Engineering has secured a construction contract worth about $117 million. The contract for the construction of a building is to commence on March 19, with a contract period of three years. It is expected to have a positive financial impact on the net tangible assets per share and earnings per share of the group for the current financial year ending May 31. Its construction order book stands at $1.32 billion including this deal as at March 18.

CapitaLand, City Developments: The Business Times understands that a put-and-call option agreement has been entered into between the owner of Liang Court mall, an entity linked to PGIM Real Estate, and two mainboard-listed property players CapitaLand and City Developments Ltd (CDL). CapitaLand's listed subsidiary Ascott Residence Trust already owns serviced residence Somerset Liang Court Singapore; CDL's indirect subsidiary CDL Hospitality Trusts (CDLHT) owns the Novotel Singapore Clarke Quay - both of which, along with the mall, are part of the Liang Court complex. Sale of the mall to the CDL and CapitaLand groups will reduce control of the complex from three parties to two, and facilitate a redevelopment, market watchers say.

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