Author: vivian
Dasin Retail Trust seeks Singapore IPO to raise US$84.5 million
A business trust holding three shopping malls in China’s Guangdong province is looking to raise at least 586.4 million yuan (about US$84.5 million) through an initial public offering on the Singapore Exchange (SGX) mainboard.
On Wednesday night, Dasin Retail filed a preliminary prospectus with the Monetary Authority of Singapore, not disclosing its pricing or the number of units that would be in the retail and placement tranches.
The trust is however said to have an indicative market cap of S$439.7 million (about US$303.2 million).
“Units will be offered to institutional investors under a placement tranche as well as a public offering here, subject to over-allotment options,” said the trust manager Dasin Retail Trust Management in the preliminary prospectus.
It is also added that Dasin Retail Trust will benefit in terms of acquisition growth in the Pearl River Delta region where the sponsor – Zhongshan Dasin Real Estate has an active real estate presence.
Besides, Zhongshan Dasin Real Estate has also been granted the rights of first refusal (ROFR) to the trust manager for 14 completed and uncompleted properties.
Dasin Retail Trust operates as a real estate company with its key investment mandate focusing on investing, claiming ownership or developing land, uncompleted developments and income-producing real estate in Greater China, which are mainly commercial-based.
The trust’s initial portfolio comprises of three retail malls – Xiaolan Metro Mall, Ocean Metro Mall, and the Dasin E-colour shopping mall – all of which are located in Zhongshan City. The three malls combined have a total gross floor area of about 314,884.9 square meters and were valued at 4.6 billion yuan at June 30, 2016.
Additionally, two cornerstone investors – China Orient Asset Management (International) Holding and Haitong International Investment Fund SPC has also invested 120.8 million yuan (about S$25 million) in the trust.
The role of the sole financial adviser, global coordinator and issue manager for the proposed listing was appointed to DBS Bank, which will also act as the joint bookrunner and underwriter alongside Bank of China and Haitong International Securities.
By Vivian Foo, Unicorn Media
Taiping Assets Management leads US$309 million round in Shouqi Car Rental
Taiping Asset Management Co., Ltd., an investment arm of Hong Kong-headquartered China Taiping Insurance Group, has become the lead investor in an RMB 2.15 billion (about US$309 million) funding round in Shouqi Car Rental.
Other investors include Tianan Property Insurance Co., Ltd., CCB International and several unnamed investors have also contributed in the latest proceeds which will be used to expand the automobile firm’s fleet, as well as improve on marketing and technology
The funding round followed a US$120 million in November 2015 which was led by Jiashi Fund Management and an earlier round of US$150 million from Beijing Tourism Group and parent Shouqi Group in early 2015.
Founded in 1992, Beijing-based Shouqi Car Rental is a subsidiary of Beijing-based automobile transportation and logistics company Shouqi Group, which is best known for operating limousine fleets for Chinese political leaders and visiting dignitaries.
The company is said to be the third largest car rental fleet in China, with 18,000 cars and a network of 230 service stations in 56 Chinese cities. The automobile subsidiary also operates via iZuChe.com and mobile apps, providing short-term and long-term car leasing, mobile app-based chauffeured ride and carpool services.
On a related matter, Volkswagen Group China announced it has signed an agreement of potential partnership with Shouqi Group to provide sustainable mobility solutions to help expand the car-sharing business in China.
Formerly known as China Insurance Group Assets Management, Taiping Assets Management is based in Hong Kong and invests in public equity, fixed income, as well as alternative investment markets.
By Vivian Foo, Unicorn Media
Indonesia MDS raises ownership in Matahari Mall online for US$12.2 million
Indonesia’s largest retailer selling fashion apparel, beauty, and home products, Matahari Department Store (MDS) has recently increased its indirect ownership in the online marketplace MatahariMall.com to further broaden its business reach through e-commerce.
This is done by purchasing 7.3 billion shares in PT Global Ecommerce Indonesia (GEI), the parent company of MatahariMall.com which ownership is derived through its subsidiaries PT Rekata Sinar Bumi and PT Lenteng Lintas Benua.
The agreement is worth about Rp 164.9 billion, translating to about US$12.2 million in transaction. Following this purchase, it will also raise the company’s stake in GEI to a paid-up capital of 12 percent in total, increasing by 3.62 percent.
Prior to this, MDS has also raised its stakes in GEI back in January to 10.33 percent. But the company’s ownership has also since been diluted to 8.38 percent due to investments made by other shareholders.
With potential additional investments from other players which could further dilute MDS’ shares, this has resulted in the company’s decision to expand its control gradually.
Matahari Mall warehouses and ships about products from 5000 affiliated seller and web portal hosts. Besides, the online retailer also produces goods and sells them independently with home electronics currently seeing robust demand.
On the other hand, Matahari Mall also handles apparel, clothing accessories and food. The company’s monthly sales are reportedly outpacing year-earlier figures by 10 percent.
“The company sees large potential in the e-commerce sector. With increased stakes in the platform, Matahari secures opportunities for huge returns in the future. We will also be able to synergise MatahariStore.com into Matahari Mall’s existing platform, which will, in turn, widen reach across the country, as well as boost Matahari’s net profit,” MDS management team commented.
It is also reportedly said that MDS intends to maintain a stake of up to 20 percent in GEI by injecting an estimated Rp 590 billion in stages.
MDS currently owns and operates 148 stores in 68 cities across Indonesia whose locations include Jakarta, Yogyakarta, West Kalimantan and East Nusa Tenggara.
By Vivian Foo, Unicorn Media
SATS to acquire 10% stake in Evergreen Sky Catering Corp for US$22.3 million from Malaysia Airlines
Airport services group SATS has entered into a conditional share sale agreement with Malaysia Airlines in acquiring a 10 percent stake in their in-flight meals caterer Evergreen Sky Catering Corporation (ESCC).
As per details of the agreement, SATS will be acquiring 11 million ordinary shares in the capital of Evergreen Sky Catering for RM100 million (about US$22.3 million), adding to its originally owned 16.5 million ordinary shares which represent 15 percent in ESCC.
Following the acquisition, the Singapore-listed SATS would now own 27.5 million ordinary shares in the capital of ESCC, which represents 25 percent of the total issued ordinary shares in the capital of ESCC.
With this, ESCC would also become an associated company of SATS, the provider of gateway and food solutions announced during its filing at the Singapore stock exchange on Tuesday.
Commenting on the deal, SATS said, “The proposed acquisition is in line with the company’s strategy of growing the scale of its food business and enhancing its connectivity to better serve its customers across key airports in Asia.”
The acquisition is not expected to have any material impact on the company’s net tangible assets per share and consolidated earning per share for the current financial year.
Shares of SATS closed at S$0.02 cents higher at S$4.85 on Tuesday.
By Vivian Foo, Unicorn Media
Taiwan’s Next Entertainment raises US$25 million in Series A round led by China live streaming app Inke
Taiwan-based global live broadcasting platform Next Entertainment has raised US$25 million in its Series A financing round for its newly launched flagship app, MeMe.
The capital is intended for global expansion as Next Entertainment aims to export and mirror the success of its predecessor Inke beyond China. This will also include hiring talents in San Francisco, Tokyo, Taipei and Beijing.
Founded by Internet entrepreneur and FunPLus founder Andy Zhong, Next Entertainment was incubated by Inke, the Chinese mobile live streaming giant which is also the round’s lead investor.
Other Series A participants also include game developer FunPlus, leading Chinese venture capital company GSR Ventures, San Francisco-based investment company Mayfield, as well as Signia Venture Partners.
“As an investor in Inke, we saw its incredible growth in China. Their partnership with a proven east-west entrepreneur like Andy is very exciting, and we’re thrilled to be able to work with them both again,” GSR’s managing director, Richard Lim said.
As part of the funding agreement, Next Entertainment plans to leverage Inke’s experience in the live streaming market to deliver more tailor-made and interactive services to global users.
“There’s a revolution happening in the entertainment industry, and we’re happy that our partners at Inke and our Series A investors are part of it.” the Founder and CEO of Next Entertainment, Andy Zhong said.
“We’re excited about live streaming as a form,” Andy Zhong adds. “By building ways for content creators to engage and interact with their fans in real time and to earn money doing it, Inke has changed people’s lives. We’re going to expand that globally.”
MeMe is a live streaming platform that enables anyone to stream, interact with their audience, build a following and get paid to do it. With MeMe, livestreamers can do live performances such as singing or talking in a very funny way.
Audiences on MeMe can also interact with live streamers and other viewers, showing their support, strengthening their profile and increasing their own following along the way.
“As far as monetization goes, you can think about this as digital tips for performers who have hyper-local appeal,” said Mayfield managing director Tim Chang. “If you bid high enough, you might be the preferred fan or the one who gets to make a request. It mimics real-life behavior at clubs, where you buy someone a bottle of champagne.”
The service was launched in Taiwan in October 2016 and is slated to launch in other territories in 2017.
By Vivian Foo, Unicorn Media