Wilmar buys back 20 million shares, chairman increases stake

FOR the five local trading sessions that spanned Oct 30 to Nov 5, the Straits Times Index (STI) rebounded 5.7 per cent, with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 4.0 per cent gain.

This has brought the STI's decline in total return for the 2020 year to Nov 5 to 16.6 per cent.

Over the five sessions, the iEdge S-Reit Leaders Index also gained 5.7 per cent, bringing its decline in total return for the 2020 year to Nov 5 to 4.3 per cent.

Share buybacks

There were 13 primary-listed stocks conducting share buybacks over the five sessions with a total consideration of S$96 million, a significant increase from S$2.3 million for the preceding week.

Wilmar International led the tally, with STI constituents Sembcorp Industries, Yangzijiang Shipbuilding (Holdings) and Singapore Technologies Engineering, also conducting buybacks.

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Director and substantial shareholder transactions

The five trading sessions saw 120 changes in director interests and substantial shareholdings, filed for close to 40 primary-listed stocks.

These included 14 company director acquisitions, with four disposals filed, and substantial shareholders filing 12 acquisitions and two disposals.

Wilmar International

Following the Oct 30 close, Wilmar International (Wilmar) reported the group achieved another strong set of results in its Q3FY20 (ended Sept 30), recording core net profit of US$501.4 million for the quarter (up from US$419.2 million in Q3FY19).

This was the highest third quarter core results since its listing.

The three consecutive quarters of sustained good performance resulted in a strong core net profit for its 9MFY20 (ended Sept 30) of US$1.14 billion, an increase of 34.4 per cent from US$846.4 million in 9MFY19.

The company then proceeded to buy back 20 million of its shares for a consideration of S$84,741,879 between Nov 2 and 3 at an average price of S$4.24 per share.

The lowest price and highest price paid by Wilmar over the two sessions were S$4.11 and S$4.31 respectively.

The 20 million shares represented 0.32 per cent of Wilmar's issued shares (excluding treasury shares) as of the date of the current share buyback resolution.

Prior to this, Wilmar had not bought back its shares since Aug 12, 2016.

On Nov 4, HPRY Holdings Ltd, in which Wilmar chairman and CEO Kuok Khoon Hong maintains deemed interests, acquired two million Wilmar shares at an average price of S$4.28 per share.

The Nov 5 acquisition also saw HPRY Holdings Ltd acquire another 1,052,300 Wilmar shares at an average price of S$4.29 per share.

These two acquisitions increased Mr Kuok's total interest in Wilmar from 12.62 per cent to 12.67 per cent.

Mr Kuok is overall in charge of the management of the group with particular focus on new business developments.

With extensive experience in the industry, he has been involved in the grains, edible oils and oilseeds businesses since 1973.

Yihai Kerry Arawana Holdings Co (YKA) is now an 89.99 per cent subsidiary of Wilmar and officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on Oct 15, 2020.

The current valuation gap sees YKA maintaining a price-to-earnings ratio of 48x, compared to Wilmar's price-to-earnings ratio of 15x.

The board of Wilmar also announced in its outlook on Oct 30 that a special dividend of approximately 15 per cent of the total YKA initial public offering proceeds will be declared in 2021, to commemorate the successful listing of YKA.

Details of the special dividend are scheduled to be disclosed in February 2021, with the release of Wilmar's full year results for the year ending Dec 31, 2020.

Wilmar also noted with its Q3FY20 results that it expects its range of quality food products to benefit from the containment of the novel coronavirus in China and the rebounding of the China economy, coupled with greater emphasis by consumers on the importance of eating safer and healthier food.

The company also expects volume to pick up in those Asian countries where lockdown measures have eased and with the tight global vegetable oils market, expects palm prices to remain firm into early 2021 with processing margins for tropical oils and oilseed crushing margins expected to be satisfactory for the rest of the year.

UOB-Kay Hian Holdings

Between Oct 29 and Nov 4, UOB-Kay Hian Holdings (UOBKH) chairman and managing director Wee Ee-chao acquired 194,200 shares of the listed company for a consideration of S$259,266, at an average price of S$1.34 per share.

Last week's transactions increased Mr Wee's total interest in UOBKH from 30.72 per cent to 30.74 per cent and followed a similar pace to his acquisition of 165,000 shares at S$1.32 per share between Oct 23 and 28.

Mr Wee's total interest in UOBKH has gradually increased from 29.49 per cent at the end of 2019, and increased from 27.98 per cent at the end of 2018.

GuocoLand

Between Oct 29 and Nov 4, GuocoLand Assets Pte Ltd acquired 83,000 shares of GuocoLand for a consideration of S$121,514 at an average price of S$1.46 per share.

These transactions have taken GuocoLand non-independent non-executive director Quek Leng Chan's total interest in the listed company to 71.96 per cent.

Preceding acquisitions saw GuocoLand Assets Pte Ltd acquire 115,000 shares at S$1.56 per share between Oct 15 and 22.

Mr Quek is also the chairman and CEO of Hong Leong Company (Malaysia) Berhad and has extensive business experience in various business sectors, including financial services, manufacturing and real estate.

Roxy-Pacific Holdings

Between Oct 30 and Nov 2, Kian Lam Investment Pte Ltd acquired 200,000 shares of Roxy-Pacific Holdings for a consideration of S$66,000.

At an average price of 33.00 cents per share, this took the total interest of executive chairman and CEO, Teo Hong Lim, in the company from 63.06 per cent to 63.08 per cent.

Mr Teo has been a director of Roxy-Pacific Holdings since May 1993 and currently sets out the group's strategies and leads overall management.

Meanwhile, between Oct 30 and Nov 3, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 100,000 shares of the listed company for a consideration of S$34,375, at 34.38 cents per share.

Mr Tan's total interest in the established property and hospitality group is 0.86 per cent.

The independent director has gradually increased his total interest in the company from 0.71 per cent on March 29.

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

Lum Chang Holdings

On Oct 30, Beverian Holdings Pte Ltd acquired 73,000 shares of Lum Chang Holdings (LCH) for a consideration of S$25,550 at 35 cents per share.

LCH managing director David Lum Kok Seng is deemed to have interests in the whole of Beverian's shareholdings in issuer, by virtue of his interests of more than 50 per cent in the share capital of Beverian.

Mr Lum maintained a 21.67 per cent total interest in LCH as of Oct 30.

The filing also detailed preceding acquisitions by Beverian Holdings Pte Ltd, between Oct 22 and 28, with 233,700 shares acquired also at 35 cents per share.

Mr Lum's entrepreneurial leadership, coupled with more than 40 years of industry experience, has been attributed by LCH to driving its increased footprint, affirming the business as a strong and trusted local construction brand known for quality and reliability.

Mr Lum has successfully led the expansion of the group's property development activities in Singapore and Malaysia, and is actively spearheading the group in property investment projects in the United Kingdom.

Metech International

On Nov 3, Metech International substantial shareholder Simon Eng increased his direct interest in the Catalist-listed company from 24.19 per cent to 24.29 per cent with the acquisition of 100,000 shares at 12.00 cents per share.

Metech International provides smart solutions to bring value and efficiency to the global supply chain.

Leveraging on its expertise in the metal industry, the company has secured worldwide acceptance among major metal traders.

Jadason Enterprises

On Nov 3, Jadason Enterprises substantial shareholder Liaw Hin Hao acquired 290,500 shares of the listed company for a consideration of S$7,553 at an average price of 2.60 cents per share.

The substantial shareholder's direct stake in the printed circuit board supplier has gradually increased to 9.04 per cent, from 6.08 per cent as at Dec 29, 2017.