Petra Foods: Ceased distribution business in Singapore
- Petra Foods announced yesterday evening that it will cease its distribution business in Singapore as the business was not profitable for many years.
- As such, the group will look towards the novation of its agency brands portfolio and sale of related inventory to Auric Pacific Group, and further the development of their Delfi brand of chocolate confectionery with Auric Pacific.
- This is not expected to have a material impact as Singapore only contributes about 4% to the group’s revenue.
- Management also stated that this does not indicate any change to the group’s overall strategy.
- As we continue to see more downside risk in their core market Indonesia, we are keeping our SELL rating with a fair value estimate of S$3.61.
(Jodie Foo)
OUE Commercial REIT: Proposed acquisition of an indirect interest in One Raffles Place
- OUE Commercial REIT announced that it has entered into a conditional sale and purchase agreement with its sponsor OUE Limited to acquire an indirect interest in One Raffles Place via the acquisition of between 75.0% and 83.33% interest in OUB Centre Limited (OUBC). OUBC is the registered owner of One Raffles Place and owns 81.54% of the beneficial interest in One Raffles Place.
- Depending on the stake acquired, the purchase consideration is expected to be between S$1,034m and S$1,148.8m.
- The proposed acquisition is expected to be funded by a combination of debt and equity, with the exact breakdown to be announced in the future.
- As this is an interested person transaction, unitholders’ approval will be required.
- We maintain our BUY rating but will review our fair value estimate of S$0.88.
(Research Team)
