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Headliners(TA Corp, GLP, Popular)
Headliners | 14 September 2012
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By: Ong Qiuying
Articles (131) Profile

Singapore M&A Deals In Vietnam Tripled To US$72m
Total mergers and acquisitions (M&A) deals from Singapore into Vietnam has hit a record high of US$72m this year, which represents a more than 3-fold increase from the previous year’s US$23m worth of deals. Singapore’s record deals were in line with the overall increase in the level of M&A activity in Vietnam. According to the quarterly Spotlight Asia report, Vietnam’s 12-month M&A activity from Aug-11 to Jul-12 reached 22 deals totalling US$2.5b (which is more M&A capital inflow than any other year over the past decade) in spite of teething problems on its economic policies and corruption that may have deterred investors. The report published by mergermarket and Kroll Advisory Solutions shows that Singapore companies have invested US$203m in Vietnam through 10 M&A deals since Aug-07 to Jul-12, with most of the M&A activity (4 deals completed) focused in the industrials and chemicals sector.

TA Corp Ventures Into Motor Oil Distribution Market
TA Corporation (listed on SGX late last year) has acquired the entire business of Sino Tac Resources – the sole distributor of British Petroleum’s (BP) motor oils and lubricants in Singapore – for $2.8m, as part of the property and construction group’s strategy to broaden its income stream. The move into the high-performance motor oil and lubricant market is aimed at creating value for shareholders and also serves as a strong platform for future growth in South East Asia. Neo Tiam Boon, TA Corp’s CEO said: “While the real estate development and construction businesses remain the group’s core focus, we will selectively acquire earnings-accretive businesses that will diversify our revenue streams and act as a platform for us to explore opportunities in other high-growth industries.” The acquisition into an established and growing business, such as Sino Tac Resources, could prove to be a winning strategy as TA Corp seeks to enhance shareholder value through business diversification.

GLP To Develop PRC Logistics Network With Haier Group
Global Logistic Properties (GLP) had signed a strategic partnership agreement with Haier Group to develop a state-of-the-art logistics network in China. Haier Group is the world’s largest home appliances’ manufacturer and is looking to better cater to the needs of its customers and further enhance its competitiveness in both manufacturing and channel services in China. The agreement signed with Haier’s industrial facilities resources arm, Qingdao Haier Industrial Development, will allow both partners to collaborate closely to develop and operate logistics facilities together, resulting in an expanded customer base for GLP and further supply chain optimisation for Haier. Both companies will also look to integrating “strategic resources, including capital, land sourcing and management expertise to build specialised parks for the home appliance industry” across China. Work will commence on 3 initial projects in Shanghai, Tianjin and Chengdu with expansion into additional markets to follow soon after.

Popular 1Q13 Hurt By Dampened Retail Demand
Popular Holdings reported a 15.9% drop in top line performance from $141.6m in 1Q12 to $119.1m in 1Q13. Popular attributed this fall to 3 main sources, 1) a decrease in retail and distribution turnover; 2) a drop in publishing and e-learning turnover; and 3) the absence of revenue recognition from its property development division. The absence of contributions from Popular’s property development division was because no further sales were realised from its “18 Shelford” property and also because the construction of Ei8ht Raja is only expected to be completed by early 2013. Excluding results from the property development division, Popular’s overall turnover would have decreased 2.3%. Popular’s earnings fared no better as its bottom line was further constricted by higher staff costs and foreign exchange losses which were partially offset by lower advertising and marketing expenditures. Overall, Popular’s 1Q13 earnings fell 35.9% to $6.6m from 1Q12’s $10.2m.

Qiuying oversees the construction and real estate investment trusts sectors at Shares Investment.

Please click here for more information about this author.

TA Corp  -- -- --   
Business: Co is engaged in the construction industry as well as the devt & sale of residential & other types of ppties. [FY17 Turnover] Construction (67.8%), real estate invs (7.3%) real estate devt (13.1%) & distribution & others (11.8%).

Insight: Nov-18, 9M18 revenue fell 41.9% to $92.4m mainly a... Read More

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