SG Dealbook: Mencast buys co, Xpress sells China units, Fuxing disposes loss-making unit, China Yongsheng appoints IFA

A number of acquisitions and disposals took place recently, on the SGX, as companies seek to streamline their businesses and shed loss-making units.

Mencast to buy Stone Marine Singapore for $2.5m

Mencast Holdings has entered into a binding term sheet with Stone Marine Overseas and Langham Industries to buy Stone Marine Singapore.

The offshore and engineering, marine and energy services provider will pay around S$2.5 million (butterfly clip) less the aggregate amount of all of Stone Marine’s outstanding debt.

Stone Marine makes and repairs marine propellers, associated stern gear and seals.

Under the deal, Mencast will be granted an exclusive territorial licence to make propellers, associated stern gears and HydroSeals under the “Stone Marine” and “Stone Marine Seals” brands for the Asia Pacific, excluding China and Korea. It will also be granted a shared territorial licence for the Middle East, China, India, the Netherlands, Pakistan, Russia, Korea and Africa (excluding South Africa).

Mencast will pay a royalty fee and purchase propeller designs from Langham, the parent company of Stone Marine.

Xpress disposes foreign subsidiaries, assets to China Gateway for $730,000

Printing company Xpress Holdings has entered a sale and purchase agreement to dispose its foreign subsidiaries and assets to China Gateway (Greater China) Consultants for S$1 million ($730,000).

The subsidiaries up for sale include Precise Media Group, Xpress Print (Shenzhen) Co., Xpress Print (K.L.) Sdn Bhd, Xpress Print (H.K.) and Shenzhen Jiaxingda Printing Co.

Xpress noted that the proposed disposal of the loss-making subsidiaries will enable the group to streamline its structure, reduce its fixed operating costs and minimise the future losses to the group.

The disposal will also free up its resources and capital for allocation to its other profitable operations.

Xpress is expected to record a loss on disposal of about S$20.9 million. This includes the realisation of the accumulated foreign exchange losses of S$10.6 million.

In FY2015, Xpress incurred a net loss of S$500,000 and an operating loss of S$605,000 (excluding one-off items) attributable to the subsidiaries.

The group said this was the result of competition from digital media providers and China’s economic slowdown.

“As restructuring the subsidiaries requires further investment in capital outlay and highly-skilled human resources which carries high business risks with an uncertain investment horizon and the sale of the subsidiaries enables the group to realise more value than voluntarily liquidating the subsidiaries,” it said.

China Gateway was incorporated in the British Virgin Islands, and is an investment holding company which has a diversified investment portfolio in media related companies and assets in Asia.

Fuxing to sell entire stake in loss-making Qingdao Hong Shi

Fuxing China Group has agreed to dispose all of its stake in loss-making Qingdao Hong Shi, for RMB 21 million (S$4.4 million).

Fuxing China’s wholly-owned subsidiary Jade Star Group Holdings entered a share transfer agreement with purchaser Cai Chang Cheng. Jade Star will make a gain of RMB 8.6 million, which will be channelled into working capital requirements, the company said in a filing.

The proposed disposal will enable the group to dispose of its finished zippers manufacturing business and streamline its structure and business operations.

Qingdao Hong Shi has been loss-making since 2008.

The disposal will also allow the group to reallocate its resources to focus on its existing core businesses and any future business opportunity which will enhancing shareholders’ value.

China Yongsheng appoints Fraser Securities as IFA

Concrete supplier China Yongsheng has appointed KGI Fraser Securities as the independent financial adviser (IFA) for its privatisation deal, at S$0.032  per share.

In an SGX filing, the company said a circular containing the IFA advice and the recommendation of the independent directors on the offer will be sent within 14 days from the date of despatch of the offer document.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.