SingXpress Land

SingXpress Land: lifts halt at 8.30am this morning. Announces that Mr Neil Bush, the son and brother of two former US Presidents, will emerge as a strategic investor in SingXpress, which is undergoing a name change to SingHaiyi. Concurrenly, SingXpress will conduct a rights issue and share placement to raise up to $226.5m in net proceeds. Mr Bush is expected to be named Chairman after the sale placement is completed. SingXpress is first proposing a 1-for-1 renounceable non-underwritten rights issue of approx 13b new rights shares at 1.5 cts each. Haiyi Holdings, controlled by Mr Gordon Tang, which holds a 62.2% stake in SingXpress, has undertaken to subscribe for its entitlement in full and to subscribe for rights shares not taken up by other entitled shareholders. SingXpress will also place 2.2b shares at 1.5 cts each to Acquire Wealth (AWL), a BVI invmt vehicle controlled by Mr Tang (70%) and Mr Neil (30%). AWL has agreed not to sell the placement shares for at least two years. The rights issue and placement shares will enlarge SingXpress’ share base from 12.9b currently to 27.9b, and boost NTA from $152.3m to $377.9m (after adjusting for the conversion of cumulative preference shares completed in Dec ’12). SingXpress says it will explore real estate invmt opportunities in the US. Believes that with a US economic recovery, the existing real estate there is seriously underestimated, offering tremendous opportunities for the co to take over distressed or property assets facing disclosure. The co will focus on identifying the property assets or projects facing payment problems and on the brink of bankruptcy. Nevertheless, the co also reserves the right to amend the use of proceeds to acquire Singapore real estate and/or property devt projects and other strategic invmts with ready exists and financial nature as they arise.