Singapore Corporate News - 23 Aug 2007

Boustead bags $300m Libyan township project

MAINBOARD-LISTED specialist engineering services and construction specialist Boustead Singapore has clinched a $300 million contract to design and build a new township in Al Marj, east of Libya's capital, Tripoli.

To give an indication of the project size, its value is just below Boustead's full-year revenue of $345 million for the year ended March 2007.

This contract also effectively doubles Boustead's order book to some $650 million, with earnings from the project flowing in over the next two financial years.

Boustead will undertake the project in partnership with Libyan-government construction giant, General Construction & Building Company (GCBC), with the Singapore company controlling a 65 per cent stake.

The deal calls for the consortium to design and build the township with 1,164 single storey semi-detached houses and supporting infrastructure on a 465-hectare site in the municipality of Al Marj.

The project will include amenities such as municipal water supply and sewage systems, education institutes and recreational facilities. Using Boustead's advanced pre-cast system and propless framework system for construction, the new township project is expected to be completed within 24 months.

Boustead-GCBC will appoint Surbana International Consultants Pte Ltd as the main consultant, marking Surbana's first foray into Libya. Surbana, formerly known as HDB Corporation, has vast expertise in new-township planning, having designed and developed 26 townships in Singapore which house 85 per cent of Singaporeans.

Koda posts 53% rise in FY2007 net profit to US$7.2m

FURNITURE manufacturing and design group Koda Ltd has chalked up a 53.4 per cent rise in net profit to US$7.2 million in the financial year ended June 2007.

The improved performance was the result of an enhanced product mix, efficient sourcing, effective cost control, successful marketing efforts as well as contributions from a recently acquired unit, the company said.

Revenue in FY2007 rose 24.8 per cent to US$60.1 million on the back of sustained strong sales in markets like the UK, Europe, North America and Asia-Pacific.

Sales also rose on the back of new designs and orders from new customers signed up at trade fairs.

Earnings per share increased to 5.4 US cents from 3.5 US cents.

Koda has declared a final dividend of 0.33 US cent a share and a special dividend of another 0.33 US cent a share for FY2007. In FY2006, it paid a final dividend and a special dividend of 0.32 US cent and 0.16 US cent, respectively.

Oculus secures $100m financing facility

OCULUS Ltd said yesterday it has secured a $100 million financing facility from a major New York-based fund manager to fund its business expansion in renewable energy and oil services businesses.

The facility is a convertible bond that gives the bondholder an option but not the obligation to convert the debt into equity. Under the bond subscription agreement, Oculus will issue up to $100 million in zero-coupon convertible bonds - in 50 successive tranches of $2 million each - to DB Zwirn Mauritius Trading No 3 Ltd and its affiliates.

The maturity date is five years after the date of issue.

After the issue of the initial tranche of $2 million, either Oculus or DB Zwirn would have the option to ask for subsequent tranches within five years of the initial completion date of the first tranche.

DB Zwirn is wholly owned by DB Zwirn Special Opportunities Fund, a partnership managed by DB Zwirn & Co, a global alternative investments manager and financial group with more than US$5 billion worth of assets under management.

Oculus said the terms of the convertible bonds are favourable to the company. There is no interest payable on the bonds, no restrictions on future borrowings and future equity raisings and no subordination of existing financing facilities. The group will also issue bonds only as and when needed. The facility can be terminated by either party.