TODAY'S HEADLINE


OFFER FOR F&N'S HK UNIT UNFAIR, SAYS ADVISER  
HK$0.28 a share o'er is 46.7% o' adjusted NAV
A spanner has been thrown in the works of a proposed privatisation deal involving Frasers & Neave (F&N) and its subsidiary Frasers Property (China) Ltd. Shareholders of the subsidiary are due to vote on July 30 in a special general meeting to consider the privatisation deal, which will pay them HK$0.28 per share. But in a twist of events, the independent board commi''ee set up to advise shareholders on the deal, together with the independent 'nancial adviser (IFA) it appointed, have advised shareholders to vote against the privatisation by its parent. They called the terms "not fair and reasonable" in the scheme document posted on Hong Kong'listed Frasers Property (China)'s website yesterday.

In addition, the board of the company highlighted a new adjusted net asset value (NAV) of HK$0.525 a share in a 'ling to the Singapore Exchange (SGX) yesterday. This is much higher than the NAV per share of HK$0.338 mentioned in the original privatisation proposal on May 8. As a result, the o'er price of HK$0.28 is at a "considerably deeper" 46.7 per cent discount to the adjusted NAV, pointed out CIMB Securities, the independent 'nancial adviser to the privatisation deal. Privatisation precedents have an average discount of 26.2 per cent, said CIMB. And more recent precedents from January 2007 have an average discount of 17.6 per cent to NAV. "Considering that the discount to the adjusted NAV per share is the more appropriate benchmark for assessing property companies, we are of the view that the terms of the proposal. . . are not fair and reasonable so far as the independent shareholders are concerned," said CIMB.

NEWS BUZZ
- Cambridge Industrial Trust: Acquiring Teban property for $41m.  
- Singapore Technologies Engineering: Bags $210m deals in Q.

Cambridge Industrial Trust (S$0.58) 
Acquiring Teban property for $41m
Cambridge Industrial Trust (CIT) is acquiring Teban property for $41mil from Eurosports Auto Pte Ltd for $41 million. On completion of the acquisition, which is expected to take place around December 2013, Eurosports Auto has agreed to  lease the property for six years. CIT intends to fund the acquisition through debt and equity. The asset will improve the weighted average lease to expiry from 3.2 years to 3.3 years as at 31 March 2012. "Additionally, the acquisition will further reduce the reliance of CIT's income stream on any single asset or tenant," said CITM in a statement. CIT's por''olio comprises 46 properties and two built'to'suit projects located across Singapore, at an aggregate book value of $1,067.5mil as at March 31.

Singapore Technologies Engineering (S$3.20) 
Bags $210m deals in Q2
Singapore Technologies Engineering (ST Engg) said its electronics unit, Singapore Technologies Electronics, won new contracts worth about $210mil in the 2Q of this year.
Source: The Business Times

Source: AmFraser