Stocks to watch: DFI Retail Group, Frasers Centrepoint Trust, ESR Reit, GuocoLand, Yeo Hiap Seng
The following companies saw new developments that may affect trading of its securities on Tuesday (Mar 25).
DFI Retail Group: The supermarket and retail store operator on Monday announced the divestment of its Singapore food business to South-east Asian retail conglomerate Macrovalue (Malaysia). Macrovalue will fully acquire Cold Storage Singapore, which comprises 48 Cold Storage stores, 41 Giant stores, as well as two distribution centres. The initial purchase price is S$125 million – subject to adjustments, with the transaction expected to complete in the second half of 2025, said DFI. Following the divestment, DFI will pivot its focus and resources in Singapore towards the Guardian and 7-Eleven businesses. Shares of DFI closed 4 per cent or US$0.09 higher at US$2.34 on Monday.
Frasers Centrepoint Trust: The manager on Tuesday announced it has entered into unit purchase agreements with FCL Amber and Bright Bloom Capital respectively, to acquire the South Wing of Northpoint City in Yishun for S$1.17 billion. The manager intends to finance the acquisition by utilising the net proceeds raised from the issuance of new equity launched on Tuesday. This comprises a private placement offering to raise approximately S$200 million, and a preferential offering to raise about S$200 million; debt financing; as well as the potential issuance of subordinated perpetual securities of approximately S$200 million. Units of FCT closed 0.5 per cent or S$0.01 higher at S$2.21 on Monday. The trust called for a trading halt on Tuesday morning
ESR Real Estate Investment Trust (ESR Reit): The trust’s manager has completed the divestment of a logistics property in Singapore for S$6.8 million. This represents a 3.5 per cent premium above their valuation of S$6.6 million as at Dec 31, 2024. The property – 1 Third Lok Yang Road and 4 Fourth Lok Yang Road in Pioneer – has a 30-year lease that expires in December 2031. Net proceeds will be used to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments, as well as fund general working capital requirements, the manager said earlier this year. Units of ESR Reit closed at S$0.245, down 2 per cent or S$0.005 before the news.
GuocoLand: The property developer has appointed Kevin Zhou as the new managing director of its wholly owned subsidiary GuocoLand China, effective today. He takes over from Peter Lee, who has been in the role since April 2022. Zhou was previously Keppel’s executive vice-president of business development in the real estate division. He will oversee GuocoLand’s business in China, including its portfolio of development and investment assets in the country. Shares of GuocoLand closed down 0.7 per cent or S$0.01 at S$1.47 on Monday, before the announcement.
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