OCBC Earmarks S$500 million for Share Buyback Programme
Oversea Chinese Banking Corporation Limited (OCBC) Monday announced that it is setting aside another S$500.0 million for on-market purchases of its ordinary shares.
This will be the bank’s fourth S$500.0-million share buyback programme. Its third programme is close to completion, with approximately S$489.0 million utilised and 64 million shares purchased as at 22 June 2012.
The bank said new share repurchases under the fourth programme will commence when the third programme is completed.
Oversea Chinese Banking Corporation Limited closed Monday at S$8.620
UEL Enters Industrial Waste Oil Treatment JV in China
United Engineers Limited (UEL) Monday announced that its wholly-owned subsidiary, UE UMC Pte Ltd, has entered into a joint venture agreement with Oilmac Envirotech Singapore Pte Ltd and Tangshan Qunxing Technology Co Ltd.
The three parties will establish a joint venture company, Tangshan UE Shengxing Renewable Resources Company Ltd, to undertake industrial waste oil treatment in China.
Tangshan UE Shengxing was incorporated with a registered capital of RMB30.0 million (S$6.0 million). UE UMC Pte Ltd will own a 60-per cent stake in Tangshan UE Shengxing while Oilmac Envirotech Singapore Pte Ltd will hold 30 per cent and the remaining 10 per cent to be held by Tangshan Qunxing Technology Co Ltd.
UEL’s stake in Tangshan UE Shengxing was funded through internal resources.
United Engineers Limited closed Monday at S$2.140
GLP Inks Leasing Agreements for Guangdong Property
Global Logistics Properties Limited (GLP) Monday announced that it has inked new leasing agreements involving 44,000 square metres of its property in Guangdong Province, China.
The first site with 30,000 sqm is leased at GLP Park Zengcheng in Guangzhou for five years to a leading domestic e-commerce retailer.
The group said its new customer is one of the fastest developing business-to-consumer online retailers with an average annual growth of 300 per cent for five consecutive years.
GLP Park Zengcheng was selected as its distribution centre in Guangdong due to its “excellent” location. The lease ratio of GLP Park Zengcheng is now 93 per cent after this lease.
The second site consisting of 14,000 sqm at GLP Park Futian in Shenzhen is listed for three years to Feili Logistics (Shenzhen) Co Ltd. The leasing agreement is the first collaboration between Feili Logistics and GLP in China.
“The new leases at our China facilities continue to grow in tandem with the increasing demand for modern logistics facilities,” said Kent Yang, Managing Director of GLP China.
Global Logistics Properties Limited closed Monday at S$2.040
K-REIT Asia Acquires Further Interest in Ocean Financial Centre
K-REIT Asia Limited Monday announced that its has entered into an agreement with Avan Investments Pte Ltd to acquire an approximate 12.39-per cent interest in Ocean Properties Limited Liability Partnership (Ocean Properties) for a period of 99 years.
This acquisition increases K‐REIT Asia’s interest in Ocean Properties from an approximate 87.5 per cent to 99.9 per cent. It is expected to be immediately accretive to K‐REIT Asia’s distribution per unit (DPU).
The trust said the acquisition will be funded by bank borrowings and proceeds from a placement of 60 million new K‐REIT Asia units at an issue price of S$1.17 per unit. The issue price translates to an approximately 15 per cent premium to the market closing price of S$1.02 per unit on Monday. The placement will increase the free float of K‐REIT Asia.
“Since our first acquisition of Ocean Financial Centre in December last year, we have raised the committed occupancy from 80 per cent to over 90 per cent as at end‐March. The enlarged interest will give us full management control of the property and higher tax transparent income which will increase the DPU to K‐REIT Asia’s unitholders,” said Ng Hsueh Ling, CEO of K‐REIT Asia Management.
K-REIT Asia Limited closed Monday at S$1.025
SIA Inks Cargo Agreement with China Cargo Airlines
Singapore Airlines Cargo and China Cargo Airlines announced Monday that they will operate joint freighter services between Singapore and Shanghai from 26 June 2012.
“The new joint service agreement provides more flexibility and better services to customers as it provides more choices of flights for air cargo shipments between Singapore and China,” said Singapore Airlines Cargo’s President, Tan Kai Ping.
The joint freighter services are part of wide-ranging initiatives between the two airlines. These include enhanced system integration and more integrated ground handling at the carriers’ respective hubs at Pudong International Airport, Shanghai and Singapore Changi Airport to improve transshipment times.
SIA Cargo owns a 16 per cent equity interest in Shanghai-based China Cargo Airlines Co Ltd.
Singapore Airlines Limited closed Monday at S$10.27