SingXpress Land

SingXpress Land: remains halted. Haiyi said it will make a mandatory unconditional cash offer for shares of the Catalist-listed property developer, that it does not already own, at 1.18 cts/sh. This represents a 21.3% discount to the counter’s last traded share price of 1.5 ct. The offer comes after Haiyi (owned entirely by a Tang Yigang and his wife) decided to convert all its cumulative non-redeemable convertible non-voting perpetual preference shares (NRCCPS) in SingXpress Land, into ordinary shares that represent 62.17% of shares on an enlarged basis. SingXpress's Hong Kong parent, Xpress Credit Ltd, has irrevocably undertaken not to accept the offer from Haiyi. Xpress Credit currently holds about 2.55b shares, representing 19.73% of shares on an enlarged basis. Haiyi's move comes barely four months after it was announced that it would subscribe to the 80 units of the NRCCPS issued by SingXpress Land at $1.18 m per unit, or ~ $94.4m in total. Each of these units can be converted into 100 m SingXpress Land shares after Haiyi gives a written notice of at least 15 days to the company. Then, SingXpress Land MD Chan Heng Fai said that the Haiyi investment would strengthen its balance sheet, and "allow SingXpress Land to take a quantum leap in the execution of its investment banking approach to property" and that "the investment is significant not just for the amount, but also for the strategic input and network which Mr Tang brings". In particular, Mr Chan highlighted that Mr Tang (who is a Chinese national and a Singapore PR with investments and real estate holdings in China, the US and Singapore) will add favourably to the strong capital market background of the group's senior mgt team. "And this expertise in securitisation, syndication and risk management will allow our team to build a network and an eco-system of financial and strategic partners focused on real estate and adopt fresh approaches to unlocking value in developing real estate in Singapore," noted Mr Chan in Aug. For FYMar12, SingXpress Land recorded a 70% drop in revenue from a year ago to $880k. It made a loss of $338k, compared with a net profit of $1.7m a year ago.