SG Market (28 Jun 17)

MARKET OVERVIEW
- The SG market could see some volatility, as continued weakness in the tech sector on Wall Street could outweigh near-term excitement in North Asia ahead of the 20th anniversary of HK's handover to China on 1 Jul.

- On the flip side, crude oil has risen the fourth straight day, which could ease recent selling pressure in oil-related stocks such as Keppel Corp, Sembcorp Marine and Ezion.

- The end-Jun bidding deadline for the potential sale of GLP could be delayed, after largest shareholder GIC is said be to looking into complaints on unfair information advantage held by the insider bid of the Chinese consortium led by GLP's chief executive Ming Mei and director Fang Fenglei.

- Technically, the STI sees immediate support at 3,215 (50-dma), with overhead resistance at 3,268.

POSITIVE NEWS
*Singtel
- Spin off for fibre network infrastructure provider NetLink Trust to be largest SGX IPO since 2011.
- NetLink is seeking to raise between $2.3b and $2.7b via a public offer of 2.9b units, priced at $0.80-$0.93 each, representing 75% of total unitbase.
- The trust is expected to yield FY18/19 distribution yield of between 4.73% and 5.8%.
- IPO will open on 10 Jul at 5pm and close at noon on 17 Jul.

*CDL Hospitality Trusts (CDLHT)
- Acquired an effective 94.5% stake in 337-room Pullman Hotel Munich and its office and retail components for €100m ($156.3m), at NPI yield of 5.4%.
- Separately, CDLHT launched an underwritten and renounceable 20-for-100 rights issue at $1.28 apiece, with gross proceeds of $255.4m to be used mainly to pare debt.
- Post transactions, aggregate leverage will contract to 33.6% from 42.6%.
- Pro forma FY16 distributable income will be lifted by 13%, but DPU would fall 5.7% to 9.43¢, due to the 20% increase in unit base.

*Croesus Retail Trust (CRT)
- PE firm Blackstone Group reportedly in the process of buying out CRT in a deal worth >$1.4b.
- CRT last traded at 1.1x P/B.

*Centurion
- Submitted application to The Stock Exchange of Hong Kong (SEHK) for its proposed dual listing on the mainboard of SEHK.

*Next-Gen Satellite Comm
- Granted a 2.5-year american option to acquire 0.65m shares (65% stake) in Zhong Ping Trading at $7.02m.
- Option provides exposure to the industrial consumable burner business in China.

NEUTRAL NEWS
*Frasers Logistics & Industrial Trust:
- Launch private placement of 78m new units at an issue price between $0.985 and $1.01 apiece.
- Maximum net proceeds of $77.2m to be used to part-fund the proposed acquisition of seven properties.

*UnUsUal
- Bringing Danish pop-rock band Michael Learns to Rock for live concerts in Manila, Singapore, and Kuala Lumpur.