Oxley to acquire 10% stake in Aspen via placement for $23.3 mil

Oxley to acquire 10% stake in Aspen via placement for $23.3 mil

Stanislaus Jude Chan
30/04/18, 01:36 pm

SINGAPORE (Apr 30): Oxley Holdings has agreed to subscribe to 97 million new shares at 24 cents each in Aspen (Group) Holdings via a placement exercise, for a total of $23.28 million.

The transaction will see Oxley own a 10.07% stake in Aspen’s enlarged share capital following the allotment and issuance of the placement shares.

The issue price represents a 14.72% premium to the volume weighted average price of 20.92 cents for each share of Aspen, based on trades done on SGX on Apr 27 – the last full market day before the signing of the placement agreement on Monday.

As at 1.34pm, shares of Oxley are trading half a cent up at 48.5 cents, and shares of Aspen are trading 1.5 cents up, or 7.3% higher, at 22 cents.

In a filing to SGX, Oxley says it believes there are synergies between the two property development and investment companies.

“We look forward to leveraging on this partnership with significant collaborations with Aspen and their global partners in the region, that will benefit all parties,” says Ching Chiat Kwong, Oxley’s executive chairman and chief executive officer.

Aspen says it intends to use 70% of the net proceeds of approximately $23.2 million for the acquisition of land banks and future developments, while the remaining 30% will be used for working capital.

“The strategic partnership with Oxley will forge a long-term and mutually beneficial relationship that will enable the group to progress to another level of growth. We believe the synergy between Aspen and Oxley will unlock many business and development opportunities for both companies,” says Dato’ M. Murly, Aspen’s president and group chief executive officer.


2019 GDP growth to ease to 'slightly above midpoint' of 1.3-3.5% forecast: MAS

SINGAPORE (Apr 26): MAS expects GDP growth to come in slightly above the mid-point of 1.3-3.5% forecast range in 2019, as growth momentum of the global economy has moderated at the turn of the year amid sluggish trade. This was according to the Guide to the Macroeconomic Review April 2019, released by the Monetary Authority of Singapore’s (MAS) Economic Policy Group on Friday morning. On the back of easing GDP growth, MAS has decided to maintain the current rate of appreciation of the SGD NEER policy band. This policy stance is consistent with a modest and gradual appreciation path of ....

CapitaLand Mall Trust kept at 'hold' by OCBC and Maybank on higher mall supply, soft retail sector

SINGAPORE (Apr 26): OCBC Investment Research says CapitaLand Mall Trust’s (CMT) 1Q19 results met its expectations. Gross revenue rose 10.0% y-o-y to $192.7 million while NPI jumped 11.5% to $140.1 million, forming 25.1% of its FY19 forecast. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income OCBC says Funan has already achieved high pre-commitment levels of 90%, and is on track to open in the middle of 2019 and will thus contribute to CMT’s earnings progressively from 2H19. However, the near-term outlook remains cautious given the higher supply, ....

Singapore's GLP plans US$3 billion IPO for its US warehouses

(Apr 26): Singapore-based GLP is planning an initial public offering (IPO) for its US operations that could raise about US$3 billion ($4.09 billion). GLP may seek to value the operations at more than US$20 billion, and the firm is said to have confidentially filed with securities regulators for the planned offering. Much of GLP’s US business stems from a 2014 deal to acquire IndCor Properties from Blackstone Group for US$8.1 billion. The offering could help GLP recoup funds after it was taken private by a management-backed consortium from the Singapore stock exchange last year. GLP ....