According to OSK, F&N has raised its buyout offer to remaining bondholders as it seeks certain concessions ahead of a business restructuring involving a spinoff of its property division.
For the $108.25 million of 5.5 per cent notes due 2016, it raised its offer to redeem the bonds at par plus 6.5 per cent and accrued interest, from its earlier offer of par plus 2.75 per cent and accrued interest.
Here's more:
For the $200 million of 6 per cent notes due 2019, it raised its early redemption offer to par plus 9 per cent and accrued interest, from par plus 3 per cent and accrued interest.
Noteholders who accept the proposals before the business close of Dec 16 will receive an additional early-bird fee of 50 basis points, and a bondholders' meeting to vote on the proposals will take place on Dec 23.
The sweetened offer is likely to get the buy-in of remaining bondholders, in our view, enabling the company to avoid a strategic default and clearing the coast for the listing of its property division, Fraser Centerpoint Limited (FCL). The demerger will be carried out by way of a 2-for-1 free distribution of FCL to its shareholders.
We see F&N as a restructuring play with prospects of narrowing its NAV discount with the spinoff of its property division, with additional drivers from synergies derived with ThaiBev and TCC Assets on the F&B and property fronts, respectively. Our SOTP valuation of $6.70/share, based on a valuation of SGD3.83 for FCL (pegged to 25% discount to RNAV) and SGD2.86 for the beverage and non- property business, offers 17% upside from current levels .
CapitaLand Limited (CapitaLand) announced that it has bought back an aggregate of 2 million shares of CapitaLand in an on-market share buyback exercise on the Singapore Exchange Securities Trading Limited on 6 December 2013.
This was in pursuant to the Share Buyback Mandate approved by shareholders at the Extraordinary General Meeting of CapitaLand held on 26 April 2013.
The Shares were bought back at the weighted average price of S$3.0037 per Share.
CapitaLand will hold the bought back Shares as treasury shares. At approximately 17% discount to CapitaLand’s Net Tangible Asset of S$3.63 as at 30 September 2013, Management believes that the current CapitaLand share price is attractive given the outlook for CapitaLand’s businesses in Singapore and China.
CapitaLand may consider further Buybacks subject to market conditions.
Raffles Education to divest Hebei land and property
It'll enter into a 70-30 JV.
According to OSK, Raffles education's subsidiary, Hebei Oriental Zhuyun will sell land use rights and property in China's Hebei province to Langfang He Ying Property development through a joint-venture firm and an irrevocable put option agreement to sell its 70% share in the JV to its partner at an exercise price of RMB700m.
Here's more:
Raffles education's unit will own 70% and the other 30% owned by He Ying with regards to the joint- venture firm tentatively to be named Langfang He Zhong Property Development Co.
Hebei Oriential Zhuyun will inject land and property valued at SGD98.3m into the JV firm which will have a registered capital of SGD68m while He Ying will inject RMB100m in cash as its capital contribution for its share of equity.
