SG Dealbook: SGX norms; Sembcorp arm buys PPL Shipyard; Tritech raises $4m

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The Singapore Exchange (SGX) proposes changes to the minimum trading price (MTP) while Sembcorp Marine is acquiring the remaining 15 per cent stake in PPL ShipyardAlso Tritech Group aims to raise S$5.8 million.

SGX proposes changes to minimum trading price requirement

The Singapore Exchange (SGX) has proposed a series of changes to the minimum trading price (MTP) that will see Mainboard-listed companies with an average market capitalisation of at least S$40 million over the past six months being spared from the bourse’s watch-list.

In addition, a half-yearly review as opposed to quarterly of the companies in the watch-list has been proposed.

Tan Boon Gin SGX Chief Regulatory Officer said, “We have observed on our analysis that companies whose market cap is below S$40 million have wider bid-ask spreads, they have higher volatility and lower liquidity.”

There are currently 55 counters on the MTP watch-list with two having managed to meet the requirements and expected to exit.

As of August 1 of this year, 125 companies will be on the watch-list if the rules are left untouched. That number will go down to 71 if the proposed changes go through. Tan added that the watch list will be frozen for now and no new entrants will be added. The MTP watch-list will also remain separate form the Financial Entry watch-list.

Companies that are on the watch-list will be given 36 months to comply, immediate from the date of implementation of change.

Sembcorp Marine buys remaining 15 per cent stake in PPL Shipyard for $115

Singaporean rig builder Sembcorp Marine announced on Tuesday that is has signed an agreement to acquire the remaining 15 per cent share in PPL Shipyard Pte Ltd (PPLS) from PPL Holdings Pte Ltd and E-Interface Holdings Ltd. for $115 million.

Following this, PPLS will become a wholly-owned subsidiary of Sembcorp Marine.

Sembcorp estimates the total purchase consideration for 100 per cent stake in PPL at S$186 million.

Tritech issues 87.3 million shares to raise S$5.8m

Engineering and marble production firm Tritech Group is issuing 87.3 million new shares at 6.61 cents a piece to mop up S$5.8 million from six parties.

Proceeds will go towards capitalising a S$4.97 million unsecured, interest-free loan to Tritech Group from Tritech International Holdings Pte Ltd as it undergoes voluntary liquidation.

The group also owes Tritech International S$800,000 for the January acquisition of a 54 per cent stake in Geosoft.

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