SINGAPORE - The following companies saw new developments that may affect trading of their shares on Tuesday (April 9):
OUE Limited, OUE Commercial Real Estate Investment Trust (OUE C-Reit): Two OUE units announced a merger on Monday to create a $6.8 billion diversified Reit. Under the proposed scheme, OUE C-Reit will pay each holder of OUE Hospitality Trust (OUE H-Trust) stapled security $0.04075 cash, plus 1.3583 new OUE C-Reit units. This translates to a deal valuation of $1.49 billion, with $74.6 million in cash, and the balance paid by the issue of about 2.5 billion new OUE C-Reit units to OUE H-Trust holders at $0.57 per OUE C-Reit unit. The $0.57 valuation for the new OUE C-Reit units matches the theoretical ex-rights price of the Reit's recent 83-for-100 rights issue to help pay for the office components of OUE Downtown. Along with an estimated $8.3 million acquisition fee and a further $15.7 million for "professional and other fees", OUE C-Reit expects to shell out a total of $1.5 billion to acquire OUE H-Trust.
OUE C-Reit last traded at $0.52 for a market cap of $1.49 billion on Friday, while OUE H-Trust closed at $0.735 for a market valuation of $1.34 billion. Parent company OUE Group will continue to retain a 48.3 per cent in the enlarged Reit. OUE shares closed at $1.77 on Friday. OUE C-Reit, OUE H-Trust and parent company OUE Ltd all called for trading halts on Monday morning before the announcements. The companies have since requested the lifting of these trading halts.
United Overseas Bank (UOB): UOB has priced the issue of its U$600 million subordinated notes due 2029 and callable in 2024 under its US$15 billion global medium term note programme. The notes, priced at 99.657 per cent of their principal amount, bear an interest rate of 3.75 per cent per annum payable in arrears semi-annually, the lender said in an exchange filing on Tuesday. The notes are intended as Tier 2 regulatory capital for the bank and are expected to be issued on April 15, 2019. The first call date of the notes is April 15, 2024, while the maturity date is April 15, 2029. The counter closed at $26.50 on Monday, down two cents, or 0.07 per cent.
Tuan Sing Holdings: Tuan Sing has acquired the remaining 51 per cent stake in PT Titian Damai Mandiri (TDM) through its indirect wholly owned subsidiary, Lachenalia, from PT Graha Baru Khatulistiwa for 26.01 billion rupiah (about S$2.48 million). TDM holds a land allocation letter from the Batam Authorities, granting it the rights to acquire 40 hectares of land in Marina City, Batam. According to a valuation report issued by Wiseso Saladin & Rekan in association with Jones Lang Lasalle, the land is valued at 52.856 billion rupiah. Tuan Sing said that the consideration would be funded by internal resources. Upon completion of the acquisition, the company through its subsidiary PT Goodworth and TDM will hold a total of 125 ha of land in Marina City. Shares in Tuan Sing closed at 41.5 cents, up half a cent, on Monday.