Singapore Stocks to Watch: ComfortDelGro, Manulife US Reit, Sakae

Tiger Newspress2023-07-19

The following companies saw new developments that may affect trading of their securities on Wednesday (Jul 19):

ComfortDelGro (C52): Transport operator ComfortDelGro on Tuesday (Jul 18) said its subsidiary ComfortDelGro Transit has bagged a six-year contract to operate rail services in Paris, France.

The contract was awarded to ORA, an international consortium comprising ComfortDelGro and two French companies: RATP Dev, a global operator of urban and inter-urban transport systems, and Alstom, which has pioneered sustainable and intelligent mobility solutions.

In a bourse filing on Tuesday, ComfortDelGro said this marks its first foray into France’s rail operations market, and is the first such move by a Singapore company.

Manulife US Reit (BTOU): The manager of Manulife US Real Estate Investment Trust (Reit) said it was “surprised” by the sharp decline in portfolio valuations that caused a breach of loan covenants, potentially affecting distributions.

“We were surprised at how deeply they had come down,” said Tripp Gantt, chief executive of the manager at a briefing on Tuesday (Jul 18), after it announced that the Reit’s real estate portfolio valuation had declined by 14.6 per cent to US$1.6 billion as at June 30, 2023.

Sakae (5DO): Douglas Foo, executive chairman of Sakae Holding, is looking to sell a 20 per cent stake in the restaurant operator for S$26.5 million, the company said on Wednesday (Jul 19).

On Tuesday, Foo entered into a sale and purchase agreement with Makara Capital to sell 27.8 million shares in the company. Makara Capital is a private equity firm which backed Singapore telco MyRepublic with a S$70 million investment in 2017.

If the proposed sale is completed, Foo will remain as executive chairman and controlling shareholder with 64.1 million shares, or about 46.15 per cent of the company’s total number of issued shares.

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