SG Morning Call | Sembcorp Is in Discussions to Buy Australia’s Alinta Energy

Market Snapshot

Singapore stocks opened lower on Monday. STI fell 0.2%; Sheng Siong fell 2%; Yangzijiang Shipbuilding, Seatrium fell 1%.

Stocks in Focus

$Sing Paincare(FRQ.SI)$: The privatisation offer by Advance Bridge Healthcare for the medical services company has fallen through, said the companies on Friday. This is because the offeror could not satisfy the conditions of the scheme of arrangement by its expiry date of Nov 27. The privatisation offer of S$0.16 per share represented a premium of 27 per cent over its last traded price but was below the initial public offering price of S$0.22 per share in 2020. Shares of Singapore Paincare last traded at S$0.159 on Nov 25, before a trading halt. The counter will resume trading on Monday.

$Rex Intl(5WH.SI)$: The oil and gas company’s subsidiary Jasmine Energy (JEL) has raised US$25 million in senior secured bonds with a three-year tenor. On Monday, the group said the proceeds will be used to fund a drilling campaign of three wells in 2026 and for “general corporate purposes” by Masirah Oil, an indirect 87.5 per cent subsidiary of JEL. The settlement of the bonds is expected to take place on Dec 12, and the bonds will carry a coupon of 14 per cent. The counter closed down 0.7 per cent or S$0.001 at S$0.151, before the news.

SG Local News

Sembcorp Is in Discussions to Buy Australia’s Alinta Energy

Singapore’s Sembcorp Industries Ltd. said it’s in talks to potentially buy Australian utility Alinta Energy Pty.

Sembcorp “is currently considering potential acquisition opportunities which include Alinta Energy”, the company, which is backed by Singapore’s Temasek Holdings Pte, said in a statement on Monday. Alinta Energy is owned by Hong Kong’s Chow Tai Fook Enterprises Ltd.

The discussions are ongoing and no definitive transaction has been entered into, Sembcorp said. The release follows reports in the Australian Financial Review and The Australian about the talks, it said.

Brookfield, GIC Agree to $2.7 Billion National Storage Deal

Brookfield Asset Management Ltd. and Singapore’s GIC Pte agreed to a binding deal with National Storage REIT to buy the Sydney-listed firm for around A$4 billion ($2.7 billion).

The parties will pay A$2.86 per share in cash, according to a statement on Monday — around a 26% premium to where the stock was trading before the deal was first flagged last month. The National Storage board unanimously recommended shareholders vote in favor of the deal.

National Storage has grown from its first storage site in 1995 in Oxley, Queensland, and now operates more than 270 centers across Australia and New Zealand. It’s the largest self-storage provider in Australia. The deal could help revitalize dealmaking in Australia, which has been relatively sluggish this year.