SG Market (31 Dec 14)

S’pore shares are expected to open lower this morning, following the weak performance on Wall Street overnight, although trading activity is expected to remain tepid, in a shortened trading session. From a chart perspective, downside support for the STI could be found at 3,360 (resistance turned support) followed by 3,307 (20-dma), with upside capped at 3,388. Stocks to watch *Ying Li: Together with China Everbright (CEL), will invest and participate in a mixed-use development project in the central area of the Beijing Tongzhou District. The 750,000 sqm GFA development is its first foray beyond its conventional Chongqing market. Ying Li’s investment is Rmb559m, which will be funded by the proceeds from the convertible bond issue and share placement to CEL. *STATS ChipPAC: Jiangsu Changjiang Electronics Technology (JCET) is making a pre-conditional voluntary offer to acquire all of STATS for an aggregate US$780m purchase price, or $0.466/share based on current diluted share capital. The offer is pre-conditioned on an internal restructuring exercise, a US$15m capital reduction and a US$200m perpetual securities offering. *Hafary: Proposed partial offer for 51% stake by Malaysian-listed Hap Seng at an offer price of $0.24/share. This is expected to bring about synergistic benefits as the group’s tile business complements Hap Seng’s building materials market, and Hap Seng can assist in Hafary’s regional expansion. *Vallianz: Acquiring 45 ordinary shares representing 45% of the issued and paid-up share capital of Holmen Heavylift Offshore for a total cash consideration of US$2.9m. The acquisition of interest in Holmen will diversify Vallianz’s product offering to include construction support vessels. *Kitchen Culture: Clinched ~$6.2m worth of contracts during the five months between Jul to Nov ‘14. As at 30 Nov ‘14, the group’s order book stands at ~$50.1m, of which about $4.1 m in contracts were secured by Kitchen Culture Hong Kong, a JV of Kitchen Culture. *Raffles Education: Has signed the Deeds of Sale pertaining to and in completion of the acquisition of Hotel Nendaz 4 Vallees and the seven commercial units within the hotel complex, in Nendaz, Switzerland.