Singapore Stocks to Watch: SATS, First Reit, Daiwa

Tiger Newspress2022-09-22

THE following companies saw new developments that may affect trading of their securities on Thursday (Sep 22):

SATS (S58): SATS is in discussions to acquire air cargo handler Worldwide Flight Services but no definitive terms or formal legal documentation, including the purchase consideration, have been agreed upon, the company said on Wednesday (Sep 21) in a bourse filing.

The mainboard-listed inflight caterer and ground handler called for a trading halt earlier in the day following a Bloomberg report, based on sources, of a potential acquisition for as much as US$3 billion.

SATS has sounded out financing for the potential purchase of Worldwide Flight Services from its private equity owner Cerberus Capital Management, the report said.

First Reit (AW9U): The manager of First Real Estate Investment Trust (Reit) has agreed to buy 2 nursing homes in Japan for 2.6 billion yen (S$26.3 million), as part of its expansion in a key growth market.

The freehold properties, Loyal Residence Ayase (Ayase) and Medical Rehabilitation Home Bon Séjour Komaki (Komaki), have a combined net property yield of 5.2 per cent.

The acquisitions will be fully funded by debt and are expected to be DPU (distribution per unit) accretive.

Daiwa (DHLU): Daiwa House Logistics Trust has launched its maiden acquisition following its IPO last November, with plans to buy two freehold logistics facilities and a piece of freehold land in Japan from sponsor Daiwa House Industry for 4,68 billion yen, or $47.7 million.

According to DHLT, the blended implied NPI yield for these two properties is 6.5%, which is higher than the blended NPI yield of the existing properties in DHLT's portfolio of 6.1%.

The purchase price is at a discount of 11.8% off the appraised value of $54.1 million of these properties as at June 30.

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Comments

  • Khoo12
    2022-09-22
    Khoo12
    Ok 
  • Attap Kia
    2022-09-22
    Attap Kia
    good. drop some more then can buy some
  • Alexiss
    2022-09-22
    Alexiss
    Ok
  • Titis
    2022-09-22
    Titis
    SATS is looking for more acquisitions 
  • Chawcs
    2022-09-22
    Chawcs
    Like
  • Peem
    2022-09-22
    Peem
    Ok
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