Financial News - 31 MAY 2010: Announcement of K-Green Trust by Keppel Corp

PROPOSED DIVIDEND IN SPECIE OF UP TO 325,900,000 UNITS IN K-GREEN TRUST – DESPATCH OF CIRCULAR AND INTRODUCTORY DOCUMENT AND NOTICE OF EXTRAORDINARY GENERAL MEETING AND CLOSURE OF BOOKS. See report and notice of book closure.


Key Points

• The following documents will be dispatched to the shareholders:
• a circular to Shareholders dated 31 May 2010 (Circular) containing, inter alia, a notice (Notice of EGM and Closure of Books).
• an introductory document dated 31 May 2010 (Introductory Document) in relation to the listing of the KGT Units on the Main Board of the SGX-ST.
• Books Closure Date will be on 22 June 2010 at 5.00 p.m. for the purpose of determining the entitlements of Shareholders to KGT Units pursuant to the Distribution.
• The proposed Distribution if approved at the EGM on 16 June 2010 will be distributed on 29 June 2010.

Author's Note
The Keppel Corp shares started trading CE (Cum Entitlement) today. The share price went up above $9 in the morning, touching an intraday high of $9.08. In afternoon trading, price starts to come down, closing at $8.82.

Financial News - 31 MAY 2010: Singapore office property market picking up, says expert

Source

Singapore's office property market is picking up, according to brokerage firm Nomura.

It noted that office rentals in Singapore are bottoming out amid stronger-than-expected demand, prompting tenants to commit sooner than expected.

Nomura said a reduction in occupancy costs and the desire to secure contiguous expansion or better quality space has prompted pre-commitments.

Given such stronger demand - with 79.9 per cent of this year's supply pre-committed - Nomura said vacancy is likely to be lower than previously forecast.

It has also raised its rental expectations by between 7.9 per cent and 15.4 per cent for International Grade A (IGA) space, and between 5.4 per cent and 10.4 per cent for Grade A space.

On the back of the revisions, Nomura is bullish about the sector and has raised its price targets for office landlords listed here.

Its top picks are Keppel Land, Singapore Land, CapitaCommercial Trust and K-REIT Asia.

It said it's keeping its "buy" rating on Keppel Land and K-REIT Asia as they are most exposed to the IGA office market.

As for Singapore Land and CapitaCommercial Trust, Nomura said valuations for the two firms remain compelling.

Stock Target Price - Updated Target Price for Keppel Corp by CIMB

Updated Target Price for Keppel Corp by CIMB:

CIMB OUTPERFORM $12.00

Latest updates at Stock Target Price.

Financial News - 27 MAY 2010: Keppel Corp - Receipt of Approvals and Eligibility to list for K-Green Trust

Keppel Corp - Receipt of Approvals and Eligibility to list for K-Green Trust (KGT). See report.

Key Points

• the National Environment Agency has approved the holding of Senoko Plant and Tuas DBOO Plant by the Trustee-Manager of KGT.
• the Public Utilities Board has approved the holding of Ulu Pandan Plant by the Trustee-Manager of KGT.
• the Monetary Authority of Singapore has approved the registration of KGT under the Business Trust Act.
• the SGX-ST has today granted a conditional eligibility-to-list for the listing of KGT on the Main Board of the SGX-ST by way of an introduction.
• The Circular in relation to the Proposed Distribution, together with a  notice of the EGM and Closure of Books, as well as the Introductory Document will be despatched to Shareholders in due course. The Company will make further announcements in respect of the Proposed Distribution and the Proposed Listing as and when appropriate.

Author's Note
Just to recap, shareholders of Keppel Corp will receive 1 KGT share as dividend in specie for every 5 Keppel Corp shares, i.e. 200 KGT shares per lot of Keppel Corp shares. The listing will be by way of introduction, so there will not be any IPO for the KGT shares.

Stock Target Price - Updated Target Price for Keppel Land by KIM ENG

Updated Target Price and Recommendation for Keppel Land:

KIM ENG    OUTPERFORM    S$4.71

Latest updates at Stock Target Price.