SG Morning Call | Former Cathay Cinema Operator mm2 Gets Lifeline After High Court Shields It from Creditors for 4 Months

Market Snapshot

Singapore stocks opened higher on Thursday. STI rose 0.4%; ST Engineering up 2%; Yangzijiang Shipbuilding, Seatrium. UOB up 1%.

Stocks in Focus

CapitaLand Investment (CLI): 9CI: CLI has closed its second onshore sub-fund, China Retail RMB Fund I (CRF I), under the CLI RMB Master Fund, and secured a total fund size of one billion yuan (S$183 million). It announced plans to recapitalise CapitaMall Xinduxin to realise value through its sale as the seed asset to the sub-fund. Shares of CLI closed flat at S$2.59 on Wednesday, before the news.

Mapletree Pan Asia Commercial Trust (MPACT): N2IU: Its manager announced on Wednesday that that its subsidiary – Festival Walk – will sell Festival Walk Tower at nearly HK$2 billion (S$328.1 million) to an unrelated third party. The tower, which is the office component of Festival Walk in Hong Kong, has a lettable area of 213,982 square feet (sq ft) and seven tenants. Its purchase price was originally HK$2.3 billion, upon independent valuation back in 2021. Units of MPACT closed unchanged at S$1.42 on Wednesday.

Ultragreen.ai: ULG: The stabilising manager of Ultragreen.ai purchased about 2.3 million shares of the counter on Wednesday, marking the fifth stabilising action it has taken since the medical technology company’s initial public offering on Dec 3. Shares of the counter closed 1.4 per cent or US$0.02 higher at US$1.44 on Wednesday.

Ever Glory United Holdings: ZKX: The Catalist-engineering services company on Wednesday made a public offer of up to two million new shares at S$0.64 per share. This comes as part of its proposed transfer to the SGX mainboard. If fully subscribed, Ever Glory United expects to raise net proceeds of around S$1.2 million, to be used for working capital. Shares of the counter last traded at S$0.695 on Dec 9, before a trading halt.

Ossia: O08 Harvey Norman operator Ossia on Wednesday said it had set up a new special purpose vehicle, Ossia Capital, for holding its property investment entities. It will acquire all of privately-owned Global Ten Realty for S$5.5 million and has itself established a property investment unit, OSA 1, which will buy a leasehold property for S$14 million. Shares of Ossia ended flat at S$0.179 on Wednesday, before the announcement.

Trading halt: Keppel Reit: K71U requested a trading halt on Thursday morning, pending the release of an announcement. Shares of Keppel Reit closed flat at S$1.03 on Wednesday.

SG Local News

Mapletree Pan Asia Commercial Trust to Sell Hong Kong Office Tower for $252 Million

Mapletree Pan Asia Commercial Trust said on Wednesday it is offloading the office tower at Hong Kong's Festival Walk mall for HK$1.96 billion ($251.89 million), as part of its portfolio optimization amid a sluggish Greater China office market.

The Singapore-listed REIT, backed by Singapore's state investment firm Temasek Holdings, agreed to sell the Festival Walk Tower to an undisclosed buyer at a price matching its latest independent valuation. The deal, fully settled in cash, is slated to close by February.

Singapore's Olam Group Says Unit Secures $1.12 Billion Dual Currency Loan

Singapore's Olam Group said on Wednesday its unit olam food ingredients (ofi) had secured a multi-tranche dual currency term loan facility aggregating $1.12 billion.

The facility, consisting of two U.S. dollar tranches of $775 million in total and a tranche of 2.42 billion yuan ($342.68 million), would be transferred to the unit following its planned initial public offering and demerger.

Former Cathay Cinema Operator mm2 Gets Lifeline After High Court Shields It from Creditors for 4 Months

Former Cathay Cineplexes operator mm2 Asia has been given a lifeline after the High Court on Dec 10 allowed the company to be shielded from creditors and legal proceedings for four months while it works out a restructuring plan.

The move will allow the company time and breathing space to work out a plan to repay its creditors, said Judicial Commissioner Mohamed Faizal in a written judgment after a hearing.

On Nov 10, mm2 said in a bourse filing that it had applied to the High Court for a moratorium under the Insolvency, Restructuring and Dissolution Act to stop current, pending or threatened proceedings from being commenced or continued against it.