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STOCKS NEWS SINGAPORE-Nera falls after privatisation deal off
July 9, 2012 / 2:46 AM / in 5 years

STOCKS NEWS SINGAPORE-Nera falls after privatisation deal off

Shares of satellite telecom firm Nera Telecommunications Ltd fell as much as 12 percent after it said its shareholders had voted against a proposed privatisation offer by Singapore Technologies Engineering’s unit.

By 0233 GMT, shares of Nera were down 10 percent at S$0.40, with over 7.4 million shares traded, compared to its average volume of 29.2 times over the last five sessions. Its shares have fallen about 5 percent so far this year, compared to the FT ST Fledgling Index’s 14 percent rise.

DMG & Partners said shareholders rejected the offer as NeraTel’s shares had surged as high as S$0.50, which was more than ST Engineering’s offer of S$0.45 a share.

NeraTel also reported a better-than-expected 184 percent jump in first quarter net profit to S$6.5 million, DMG said.

“As such, public investors now believe that the company could potentially perform better and is worth more than the offer price,” said DMG in a report.

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1032 (0432 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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STOCKS NEWS SINGAPORE-Maybank downgrades Genting Singapore to hol d

Maybank Kim Eng downgraded casino operator Genting Singapore to ‘hold’ from ‘buy’ and cut its target price to S$1.40 from S$2.00, after the government proposed to toughen its casino laws.

By 0204 GMT, Genting shares were 1.1 percent lower at S$1.39, and have fallen about 8 percent since the start of the year, compared to a 12 percent rise in the Straits Times Index .

The proposed amendments to Singapore’s Casino Control Act will likely be detrimental to Genting’s VIP volumes, if passed, Maybank said.

The brokerage also said if international marketing agent (IMA) commissions, which the casino regulator may be empowered to cap, are set below regional averages, IMAs will encourage their VIPs to gamble elsewhere.

Part of the proposed amendments will allow also the regulator to impose a fine of up to 10 percent of annual revenues generated by operators Las Vegas Sands and Genting, local media reported on Saturday.

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1004 (0404 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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9:43 STOCKS NEWS SINGAPORE-CIMB cuts Petra Foods target price

CIMB Research lowered its target price for cocoa company Petra Foods Ltd to S$2.04 from S$2.34 and kept its ‘underperform’ rating on the stock, citing potentially lower processing margins.

Shares of Petra Foods were flat at S$2.46 by 0130 GMT. They have surged 33 percent since the start of the year, compared with the Thomson Reuters Asia Pacific ex Japan Food Processing Index’s 2.3 percent rise.

“There has been a flurry of downstream investments in Indonesia from domestic and international players following an imposition of export taxes on cocoa beans, aimed at encouraging value-added downstream production,” said CIMB in a report.

Indonesia’s grinding capacity is expected to jump 43 percent in 2012 on new installations, according to the Indonesian Cocoa Industry Association, and CIMB expects capacity to grow another 28 percent to 500,000 metric tonnes by 2013, tipping the industry into oversupply.

The new capacity will stiffen competition and erode the margins of processors such as Petra Foods, CIMB said.

0936 (0136 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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