SG Morning Highlights | KKR-Singtel Consortium Emerges as Front Runner to Buy S$1.35 Billion Stake in STT GDC
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Wednesday; STI down 0.12%
●Healthcare Sector Sees Renewed Interest from Corporate Buyers in Singapore
●Singapore Retailers Slow to Adopt Self-Checkout as More Shoppers Prefer Faster Checkouts
●Stocks to watch: Singtel, Citydev
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG$ dropped 0.12 percent to 3326.18 as at 9:03 am.
Advancers / Decliners is 48 to 55, with 51.22 million securities worth S$77.01 million changing hands.
Breaking News
Healthcare Sector Sees Renewed Interest from Corporate Buyers in Singapore
The healthcare industry in Singapore has seen an increase in merger and acquisition (M&A) activity, recording a deal value of $1.13bn between January and April 2024, accounting for 25% of total deal value in Singapore. This trend is partly due to corporate buyers returning to the healthcare sector to acquire bolt-on targets for lower valuations amidst a challenging private equity exit environment. Furthermore, Fullerton Health’s sale to Far East Drug Co and the acquisition of Eu Yan Sang by Japan’s Mitsui and ROHTO Pharmaceutical were high-profile control deals that helped boost the industry's M&A activity. The technology sector follows healthcare with a deal value of $1.03bn, representing 23% of total deal value for the first four months of the year.
Singapore Retailers Slow to Adopt Self-Checkout as More Shoppers Prefer Faster Checkouts
According to data from Adyen, five in 10 shoppers in Singapore want more retailers to offer self-checkout options. However, only 18% of retailers currently offer self-checkout, while 21% have mobile point-of-sale solutions. In addition, only 19% of Singaporean retailers support one-click checkouts, less than three in 10 accept digital wallets, and only 16% support Buy Now, Pay Later (BNPL) online and in-store. The preference for self-checkout is driven by shoppers' expectations for a fast and easy checkout online and in-store, but retailers are falling behind in providing this experience. Adyen also highlighted that physical cards are becoming obsolete, with 31% of consumers in some markets ditching wallets in favor of phone payments.
Stocks to Watch
$Singtel(Z74.SG$: A consortium of KKR and Singtel is leading the race to buy a minority stake worth $1bn in STT Telemedia Global Data Centres (STT GDC), one of Asia's largest data centre providers, according to two anonymous sources. The consortium faces competition from New York's Stonepeak for the 20% stake, which could be sealed or announced in early June. The potential investment in STT GDC reflects the growing interest and demand for data centres across Asia-Pacific as countries and companies respond to the boom in artificial intelligence. KKR bought a 20% stake in Singtel's regional data centre business in 2023 for S$1.1bn.
$CityDev(C09.SG$: City Developments Limited (CDL) has purchased Delfi Orchard, a 40-year-old strata-titled building, for SGD439m ($325m). The price tag represents a land rate of SGD3,346 per sq ft per plot ratio, according to marketing agent Savills Singapore. CDL already owned 84% of the Orchard Road building's units and is now able to unlock the asset's full potential, according to group CEO Sherman Kwek. The purchase is the first successful en bloc deal done in the area since December 2022.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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