The Straits Trading Company has reported earnings of $551.3 million for FY2022, up 135% versus $234.3 million recorded in the preceding year ended Dec 31 2021, thanks to divestment gains of its stake ARA Asset Management.

 

Revenue in the same period was up 33% to $527.6 million, with higher contributions from its various business segments.

 

For 2HFY2022, the company booked a fair value loss of $75.4 million on its investment properties portfolio, versus a gain of $133.4 million made in FY2021.

 

This brings 2HFY2022 losses to $122.5 million, versus earnings of $144.1 million.

 

In the past year, the company completed the acquisition of a portfolio of office and industrial buildings and several plots of development land in the Gloucester Business Park in the UK.

 

To further diversify its portfolio, it also acquired a remaining 20% stake in its logistics portfolio in Australia - part of Straits Trading' s wider multi-asset, multi-market strategy.

 

Straits Trading owns stakes in the hospitality business, such as its 30% share of Far East Hospitality Holdings. During the year, this business segment returned to profitability with an ebitda of $0.8 million.

 

Now, given the global uncertainties, Straits Trading prefers to remain cautious and will continue to adopt prudent financial management and explore opportunities to drive long-term sustainable growth.

 

Elsewhere, its resources segment, mainly via its separately listed, 52%-owned Malaysia Smelting Corp, has reported an ebitda of $54.6 million in FY2022, down from $59.5 million, due to higher energy costs which made smelting more expensive.

 

MSC, says Straits Trading, will continue to focus on improving operational efficiencies in its smelting and mining segments.

 

&ldquo Our FY2022 results demonstrate the resilience of our conglomerate business model with diversified operations and interests across several markets,&rdquo says executive chairman Chew Gek Khim.

 

&ldquo As such, we were able to grow from strength to strength, and deliver superior value to our stakeholders.

 

&ldquo We aim to build on this momentum by continuing our efforts under the Straits 5.0 Transformation,&rdquo she adds, referring 137-year-old company' s latest growth stage.

 

Straits Trading warns that the current FY2023 will remain &ldquo challenging&rdquo because of higher energy prices, interest rates, and labour cost.

 

&ldquo The group will continue to stay disciplined and prudent in its investment approach as it navigates forward,&rdquo the company says.

 

Straits Trading plans to pay a dividend of 8 cents &ndash which is on top of the distribution in specie equivalent to 50 cents already made earlier in FY2022.

STRAITS Trading&rsquo s S$370 million secured exchangeable bond offering has received applications for 1.9 times the amount on offer, the company said on Monday (Feb 13).

 

This puts the total demand from investors in terms of value at S$703 million.

 

The exchangeable bonds were also listed for trading on the Singapore Exchange on Tuesday, with interest payable on a semi-annual basis each year starting from Aug 13, 2023.

 

These bonds carry a coupon rate of 3.25 per cent due on Feb 13, 2028, and are exchangeable into ordinary shares of ESR Group at an initial exchange price of HK$22 per share. Compared with ESR&rsquo s closing price of HK$16.76 at the launch of the bonds on Jan 30, 2023, the initial exchange price represents a 31 per cent premium.

 

Net proceeds raised will be used to refinance the group&rsquo s existing borrowings, working capital, as well as capital expenditure and investments, said the company in an announcement last month.

 

&ldquo With the proceeds from the exchangeable bonds, Straits Trading aims to maintain a strong balance sheet with sufficient liquidity and position itself well for future opportunities in the market,&rdquo it added.

 

Chew Gek Khim, executive chairman of Straits Trading, said part of the proceeds will be used to carry out the company&rsquo s growth strategy.

 

Goldman Sachs is the overall coordinator and sole bookrunner of the deal.

 

THE Straits Trading Company : S20 +0.42% has priced S$370 million worth of secured exchangeable bonds maturing Feb 13, 2028.

 

Net proceeds will be used for the group&rsquo s refinancing of existing borrowings, to finance working capital, as well as capital expenditure and investments. 

 

In a bourse filing on Tuesday (Jan 31), Straits Trading said that the bonds will carry an interest of 3.25 per cent per annum, payable on a semi-annual basis on Feb 13 and Aug 13 in each year starting from Aug 13, 2023.

 

The bonds initially comprise 100,253,182 shares of par value of US$0.001 each.

 

Bondholders will be entitled to receive a pro rata share of 67,738.6364 shares for each S$250,000 principal amount of bonds, at the initial exchange price of HK$22.00 (S$3.69) for the exchangeables. 

 

The company will redeem each convertible bond at 100 per cent of its principal amount on the date of maturity, together with any accrued but unpaid interest.

 

On Oct 10, The Straits Trading Company : S20 -0.47% independent and non-executive director Chua Tian Chu acquired 7,000 shares of the company at S$2.26 per share. This took Chua&rsquo s total interest in the conglomerate-investment company to 64,000 shares, which represents close to 0.02 per cent of the outstanding shares. Chua was the deputy CEO of Meritus Hotels & Resorts from 2012 to 2013. Prior to this, Chua held the positions of executive vice-president of international sector and Greater China region, as well as head, global financial institutions group of United Overseas Bank, and managing director and head of investment finance of Citigroup Private Bank (Asia-Pacific region) as well as head of Citigroup Corporate Banking in Singapore.