Singapore trust tests investor appetite for $1bil IPO

Asian Pay Television Trust, an investment vehicle for one of Taiwan’s biggest pay-TV operators, has started testing appetite for an up to 1 billion dollar listing that is set to be the city’s second-biggest flotation so far this year.

The Taiwanese company plans to list in the form of a trust, people with knowledge of the deal said Wednesday. Singapore is a hub for trust listings, which appeal to investors seeking assured yields from investments rather than short-term capital gains. The planned initial public offering comes as several companies are considering relaunching IPOs in Singapore, encouraged by large share sales in Southeast Asia in recent months.

Taiwan Broadband Communications is owned by two funds managed by Australia’s Macquarie Group --the Macquarie International Infrastructure Fund, known as MIIF, and Macquarie Korea Opportunities Fund-- which plan to sell their stakes to Asian Pay Television Trust.

The trust has received listing approval from Singapore Exchange, and plans to release a preliminary IPO prospectus by mid-May, according to one of the people with knowledge of the deal. The trust would then start taking orders from institutional investors, ahead of a planned listing at the end of May, the person added.

A Macquarie spokeswoman declined to comment.

Established in 1999, Taiwan Broadband Communications is one of Taiwan’s biggest pay-TV operators and has an interest in five cable television networks in northern and central Taiwan, broadcasting to more than 1 million homes. The group also sells services like broadband internet access.

Singapore-listed MIIF said this month it plans to inject its 47.5% stake in Taiwan Broadband Communications into Asian Pay Television Trust for a minimum of $469.5 million. The fund will seek shareholders’ approval for the sale on April 30.

MIIF’s shareholders would stand to receive at least $0.408 per share if the fund successfully sells its stake. As of Dec. 31, Taiwan Broadband Communications accounted for 61% of MIIF’s portfolio value.

MIIF bought an initial 20% stake in Taiwan Broadband Communications in July 2007 and has spent $479.2 million to more than double its interest, according to its website. Macquarie Korea Opportunities Fund acquired a 60% stake in June 2008 from the formerly listed Macquarie Media Group for 392 million Australian dollars (US$506 million), and later sold part of its interest.

J.P. Morgan Chase & Co., DBS Group Holdings, CIMB Group Holdings and Macquarie are joint lead managers for the planned IPO.

Apart from Asian Pay Television Trust, several other companies are also pushing for listings in Singapore, encouraged by strong demand for multi-billion-dollar listings in the region earlier this year. Mapletree Investments. --a unit of Singaporean state-investment firm Temasek Holdings.--completed in March a US$1.3 billion IPO for a China-focused real-estate investment trust, and BTS Group Holdings PCL raised US$2.13 billion ($2.62 billion) via listing its skytrain business in Thailand earlier this month. Mapletree Greater China Commercial Trust’s offering was nearly 30 times subscribed, while BTS Rail Mass Transit Growth Infrastructure Fund’s IPO was also oversubscribed by multiple times.

U.K.-listed fund management and banking group Investec PLC plans to raise up to US$500 million by June through an IPO of an aircraft-leasing trust, while Japan’s Croesus Retail Trust is seeking to raise about US$300 million by listing some shopping malls, also by June, people with knowledge of the deals said earlier. The companies had planned listings last year, but pulled their deals because of weak market conditions and tepid investor demand.

Small cap rally, credentials boost SGX Q3 profit by 26%

SINGAPORE Exchange (SGX) is reaping the benefits of a small-cap rally and its growing reputation as a safe and efficient marketplace, posting its best quarter since the global financial crisis.

"The open interest in our derivatives business is a very good example of how the trust of the way we run a clearing house, the trust of the regulatory environment we're in, is starting to pay off," chief executive Magnus Bocker said yesterday. "It's more attractive to have your open interest here than some of the other markets that those products are trading."

The market operator posted a 25.6 per cent year-on-year jump in net profit to $97.7 million, or 9.13 cents per share, in the fiscal third quarter ended March. For the nine months to March, net profit rose 7.6 per cent to $248.3 million, or 23.24 cents per share.

SGX is recommending a dividend of 4 cents per share.

HSBC upgrades Singapore's market to Overweight

HSBC upgrades to Singapore's stock market to Overweight from Neutral for the second quarter. "With markets across the region stuck in a holding pattern, we believe Singapore provides a relatively safe haven," it says.

"Singapore is one of the more stable, low beta Asian markets with very low earnings volatility. The expected 2013 dividend yield of 3.5% -- with an appreciating Singapore dollar -- is in the upper end of the region's range, and one of the main attractions of the market."

HSBC notes mutual-fund investors have rotated to underweight Singapore equities in relative terms, with their exposure at a five-year low and sell-side analysts are increasingly bearish on Singapore equities.

It notes the market trades at 14.3x 12-month forward P/E, a 1% discount to the 10-year average; with the consensus EPS growth estimates at just 2.1% for MSCI Singapore, high risks to earnings appear priced in, it says. It has an end-2013 STI target of 3,800.

China Fishery raises takeover offer for Copeinca to match rival's bid

China Fishery Group on Thursday said it will up its offer price for Norwegian-listed Copeinca from 53.85 Norwegian krone to 59.7 krone, in order to match rival Cermaq ASA's competing bid of the same value.

China Fishery has also decided to extend the acceptance period of the voluntary cash offer to expire on May 10, 2013 at 21:00 (Central European time). It expects to settle the cash offer in early June this year.

The group's revised offer price extends also to the 11.7 million Copeinca shares newly issued to Cermaq.

China Fishery said it has received pre-acceptances and entered into call-option agreements for a total of 16.9 million Copeinca shares, or 24.1 per cent of Copeinca post-share-issuance to Cermaq.

ComfortDelgro acquires London Bus Business

ComfortDelGro is flat at $1.915, barely reacting to news it plans to acquire part of FirstGroup PLC's London bus business and assets for around $109.0 million.

An analyst notes the deal isn't really big enough to move the needle, with a likely 2%-3% impact to ebitda.He says the acquisition is in line with CDG's strategy to grow its overseas operations.

"They are already the fifth largest operator (in the UK). Acquiring more buses will improve economies of scale," he notes. Orderbook quotes suggest the stock isn't likely to break out of its $1.905-$1.915 intraday range amid relatively slim volume and as traders are shunning defensive dividend plays for the session.

Midas unit wins $17.3mil supply contract for new MRT trains

Midas Holdings says its subsidiary, Jilin Midas Aluminium Industries Co., has been awarded orders totalling $17.3 million from Alstom Transport S.A. to supply train car body module components for new trains on the Singapore North East Line (NEL) and Circle Line (CCL).

According to the orders, Midas will supply train car body module components for 18 train sets (1 train set = 6 train cars), or 108 train cars for the NEL, and 24 train sets (1 train set = 3 train cars), or 72 train cars for the CCL.

Patrick Chew, Chief Executive Officer of Midas, said, “Since 2004, we have successfully secured contracts to supply large section aluminium alloy profiles to manufacture body frames for the Singapore Downtown Line Project and Circle Line Project amongst others. We are pleased to have been awarded these orders from our long-standing major customer Alstom, testament to Jilin Midas’ technical capabilities both at home and abroad.”

In February 2013, Singapore’s Transport Minister announced that transport operator, SMRT Corporation, will spend about $1.75 billion from 2013 to 2019 to upgrade and purchase assets for its rail network. As part of this upgrade, SMRT will spend $750 million to purchase additional trains for its Mass Railway Transit and Light Rail Transit lines, including 24 new trains for the Circle line.

Delivery is slated to take place progressively from 2013 to 2015. These orders are expected to contribute positively to the Group’s financial performance for the financial years ending 2013 to 2015.

SingTel Q2 profit below forecast; flags challenges in Australia

SINGAPORE - Singapore Telecommunications Ltd reported a 1.6 per cent fall in second-quarter net profit on Wednesday, dragged down by higher costs and weaker regional currencies, and flagged a drop in group revenue this fiscal year due to its Australian unit Optus.

SingTel, Southeast Asia's largest telecommunications firm, said it now expects operating revenue in Australia to fall by mid single-digit levels in the financial year ending March 2013, due to price competition and reduced mobile termination rates. Previously, revenue in Australia was expected to grow by low single-digit levels.

With the revised revenue outlook for Australia, SingTel said its group revenue is seen falling by low single-digit levels. But it said group earnings before interest, taxes, depreciation and amortisation (EBITDA) are expected to be stable.

SingTel had net profit of S$868 million (US$710 million) for the three months ended in September, down from S$882 million a year earlier.

Excluding exceptional items, underlying net profit was S$886 million. That was below the S$896 million average forecast based on a Reuters poll of six analysts.

SingTel maintained an interim dividend of 6.8 Singapore cents per share.

Pretax earnings from SingTel's regional mobile associates grew 17 per cent to S$549 million, with strong operating performance from Indonesia's Telkomsel and Thailand's Advanced Info Service PCL helping to offset weaker results from India's Bharti Airtel Ltd.

Bharti Airtel reported its 11th consecutive quarter of profit declines last week, with margins under pressure from intense competition.

SingTel shares have risen about 3 per cent this year, underperforming a 14 per cent gain in the broader Straits Times Index.

Of 24 analysts tracking SingTel, 14 have "hold" ratings, six have "buy" or "strong buy" and four have "strong sell". - REUTERS

http://www.reuters.com/article/2012/11/13/singtel-results-idUSL3E8MD61A20121113