Tuesday, July 3, 2012

» TT Int'l shares dive 40% as Big Box deal hits snag

Business Times: Tue, Jul 03

SHAREHOLDERS of TT International suffered some serious Monday blues when the stock plummeted 40 per cent coming out of the weekend on news of a scrapped deal.

TT International, which sells consumer electronics under the Akira brand, said yesterday that its plans to develop the Big Box mega warehouse retail project in Jurong were dealt a setback after a proposed investment by private equity real estate firm Lucrum Capital fell through.

The stock was the most actively traded on the Singapore Exchange yesterday, losing 40 per cent of its value, or 4.8 cents, to close at 7.2 cents.

"A lot of people who bought the stock when the news came out got burnt," one stock trader said.

Big Box is the last and largest of four warehouse retail projects approved by the Singapore Economic Development Board.

Upon completion, it is expected to offer eight storeys of retail space with gross floor area of about 1.3 million square feet.

Under the deal, announced on April 5, TT International was to issue $200 million of medium-term notes to Lucrum and grant options for Lucrum to subscribe for up to 49 per cent of the project.

TT International said certain terms could not be worked out by the long-stop date. "The company will continue to explore opportunities with other interested parties to complete the development of the property and realise its investment therein," it announced.

A TT International spokesman told BT: "The company is fully committed to completing Big Box on schedule by early 2014, as it firmly believes the project will enhance value for all stakeholders."

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