Far East acquires local air-con services firm for $7 mil; to spin it off in Catalist listing

Far East acquires local air-con services firm for $7 mil; to spin it off in Catalist listing

By: 
Samantha Chiew
05/03/19, 07:28 am

SINGAPORE (Mar 5): Far East Group announced that it has acquired the entire issued and paid-up ordinary shares in M-Tech Air-Con & Security Engineering.

The vendors are Quek Poh Chuan and Lee Sui Fook and the consideration for the acquisition is $7 million including 2.98 million new M-Tech shares.

M-Tech's core business is to provide Air Conditioning and Mechanical Ventilation (ACMV) services for residential and commercial buildings. It has an issued and paid up capital of $0.5 million divided into 0.5 million ordinary shares.

Following the acquisition, Far East will be making an application to the Singapore Exchange for the listing of 2.98 million M-Tech shares on the Catalist board. The initial public offering announcement will be made in due course.

As at Apr 27, 2018, M-Tech had about 108.48 million shares, and assuming the successful allotment and issue of the consideration shares, the total number of issued shares will increase to 111.46 million shares.

According to the appointed auditor, M-Tech is expected to achieve at least $0.75 million in net profit after taxes (NPAT) for FY19 and FY20, respectively.

Far East will fund the cash consideration through internal resources and/or bank borrowings.

Shares in Far East last traded at 14 cents on Monday.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index. The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive. This coupled with positively placed DIs and rising ADX should continue to underpin the STI. The only cautionary signals are the somewhat overbought levels of short term stochastics and 21-day RSI, and stagnant vol....
Read More >>

SMI takes legal action against Hyflux; Maybank moves on Tuaspring

(Apr 20): SM Investments (SMI) has terminated its rescue agreement with Hyflux, it announced on Friday. Hyflux, on its part, had already on April 4 terminated the same agreement with SMI. SMI claims it has thus far abided by the agreement. “To clarify, SMI does not accept the purported termination of the Restructuring Agreement by Hyflux on 4 April 2019. This is because the termination was not in accordance with the terms of the Restructuring Agreement," said SMI. Under the agreement reached last October, SMI, led by Indonesian tycoon Anthoni Salim, was to have invested $530 million in....
Read More >>

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2. Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively. This comes after booking contributions from Gallileo – an office building in Frankfurt, Germany which the trust acquired a 94.9% stake in during June 2018 – as well as higher occupancy at Asia Square Tower 2, both of w....
Read More >>