THE following companies saw new developments that may affect trading of their securities on Monday (Oct 14):
CapitaLand Ascendas Reit (Clar): It is divesting an industrial property for S$112.8 million at a S$45.3 million premium or nearly double of the property’s original purchase price of S$58.4 million. On Oct 11, the Reit’s manager said the proceeds would be used for various purposes including paying down debt, and that its aggregate leverage would be reduced from 37.9 per cent to about 37.4 per cent if net proceeds are used repay Clar’s borrowings as at Dec 31, 2023. The divestment is expected to be completed within the fourth quarter of this year and is not expected to have material impact on Clar’s net asset value and distribution per unit for the financial year ending Dec 31, 2024. Units of Clar closed at S$2.79 on Friday, down 0.4 per cent or S$0.01, before the announcement.
Yangzijiang Shipbuilding: The China-based shipbuilder announced that customers had filed arbitration proceedings against three of its units over the orders of 10 vessels worth US$900 million for alleged breach of contract. The first tranche of hearings are scheduled for Nov 14, and the unidentified customers are claiming US$835 million for compensation. The claims are not expected to have a material adverse impact on the group’s financial position for the financial year ending December 2024, Yangzijiang said. The counter closed S$0.02 or 0.8 per cent higher at S$2.50 last Friday, before this announcement.
