Yanlord to raise $346 million in sale of shares, bonds 18 Jun 2009 08:51

SINGAPORE, June 18 (Reuters) - Singapore-listed property firm Yanlord <YNLG.SI> said on Thursday it is aiming to raise about S$503 million ($346 million) through the sale of shares and convertible bonds.

The proceeds will be used for investments, acquisitions and strategic alliances, the company said in a statement to the Singapore stock exchange.

Yanlord said it would sell 110 million shares at S$2.08 each, or at the lower end of an indicative price of S$2.08-S$2.16 a share, a range disclosed by sources to Reuters late on Wednesday.

The company also plans to sell S$275 million in five-year convertible bonds at 5.85 percent, with an option to upsize the deal by another S$100 million.

There will be a put option at the end of the third year.

JP Morgan <JPM.N> and RBS <RBS.L> are handling the deal.

The company also said a controlling shareholder is separately selling 10 million shares at S$2.08, raising S$20.8 million shares. ($1=1.455 Singapore Dollar) (Reporting by Harry Suhartono, editing by Dhara Ranasinghe) ((harry.suhartono@thomsonreuters.com; +65 6403 5658; Reuters Messaging: harry.suhartono.reuters.com@reuters.net)

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Chaoda Modern sells $228 mln shares 18 Jun 2009 09:03

HONG KONG, June 18 (Reuters) - Chaoda Modern Agriculture <0682.HK> said on Thursday it planned to sell up to $228 million shares at a discount, raising capital to repay outstanding debt.

The Chinese agricultural products producer and distributor said it would sell up to 388 million shares, or 12.8 percent of its enlarged share capital, to professional and institutional investors at HK$4.60 each, raising HK$1.78 billion ($228 million).

Trading in the company's shares, which was suspended on Wednesday afternoon, will resume on Thursday. The stock last traded at HK$5.35.

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Zhojin Mining 1818

Economist Andy Xie thinks gold can reach US$2,000 an ounce in two to three years. Currently it is trading around US$955 an ounce.

Zhaojin Mining (1818) is worth considering. The gold miner listed in December 2006 at an IPO price of HK$12.68. It issued a bonus share at a ratio of one for one in April last year.

If you have been holding this stock since it listed, your cost would be HK$6.34. Besides, you would have received a dividend of 80 HK cents. At its close yesterday of HK$13.46, Zhaojin has had a 24 percent return in the last 2 years. During the same period, gold surged 47 percent from US$650 per ounce.

Zhaojin is an alternative to buying gold, offering you higher positive gearing. Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.

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Huiyuan Juice 1886

* China Huiyuan Juice Group <1886.HK> said late on Wednesday 
Warburg Pincus had disposed of 98.98 million shares of the 
company but still had interest in 3.54 million shares. It said 
chairman and controlling shareholder Zhu Xinli had confirmed that 
he had no intention to reduce his shareholdings in the company. 

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Haier to Take 20% Stake in New Zealand Company

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By REBECCA HOWARD

WELLINGTON, New Zealand -- Haier Group will purchase a 20% stake in Fisher & Paykel Appliances Ltd. in a roughly US$50 million deal that will help raise Haier's profile in the global home appliances market and bolster both companies' ambitions to grow outside of their home countries.

The companies said the deal will give Haier exclusive rights to sell Fisher & Paykel appliances in China, while its New Zealand counterpart can exclusively sell Haier's products in Australia and New Zealand.

The deal also allows Fisher & Paykel to avoid a potential call on funds from its bankers.

Pressured by fierce competition and rising costs in the home market, Haier, China's biggest home appliance maker, has adopted a proactive approach on overseas expansion in recent years to drive future growth. But it has encountered stumbling blocks in penetrating the important U.S. market. It lost to Whirlpool Corp. in acquiring U.S. appliance maker Maytag Corp. in 2004 and last year it dropped a bid for General Electric Co.'s appliances unit due to the global economic slowdown.

In 2007, Haier made small acquisitions for individual factories in markets such as India and Thailand as part of its strategy to base production closer to its customers.

"The deal will allow Haier to share the marketing, and research and development resources of Fisher & Paykel in the high-end whiteware market," Haier said.

The Auckland-based appliance maker said it would raise a minimum of 189 million New Zealand dollars (US$118.2 million) through a NZ$46 million initial placement to Haier Group, and a fully underwritten NZ$143 million pro-rata renounceable rights issue. It will then carry out a top up placement to Haier of NZ$12 million to ensure a shareholding of 20%.

Haier's total investment in the company will be between NZ$80 million and NZ$82 million.

The partnership "gives us a unique opportunity to fully globalize Fisher & Paykel Appliances and really drive our global expansion into parts of the world that had previously been very difficult for us to penetrate," Fisher & Paykel Chief Executive John Bongard said in a conference call with analysts.

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Key Taiwan telcos may adopt China's TD-SCDMA - ITRI 08 Jun 2009 13:17

AIPEI, June 8 (Reuters) - Two of Taiwan's three biggest telecom operators are considering adopting China's homegrown TD-SCDMA 3G mobile network standard, a boost for the fledgling technology's bid for international acceptance.

Chunghwa Telecom <2412.TW> and Far EasTone <4904.TW> are in talks with Taiwan's Industrial Technology Research Institute (ITRI), which signed a deal with China's Datang Telecom <600198.SS> to set up a trial TD-SCDMA network on the island, an ITRI spokeswoman said.

This would make it one of the first publicly announced cases of a company outside of China setting up a TD-SCDMA network.

South Korea's SK Telecom <017670.KS> and France Telecom <FTE.PA> have previously expressed interest in the Chinese technology, although nothing concrete has been done on a commercial basis.

"Chunghwa and Far EasTone are talking to us about their interest in the technology," said ITRI spokeswoman Canny Jiang, adding that unlisted VIBO Telecom and Tatung Telecom were also talking to them about using the TD-SCDMA standard.

"They haven't said they'll set up a network in Taiwan, and there are no concrete plans right now, but we're in talks about it," Jiang said.

Chunghwa Telecom and Far EasTone officials were not immediately available for comment.

The move by Taiwan telecom companies is another sign of warming ties between the two sides, and comes about a month after China's top telecom operator China Mobile <0941.HK> said it wanted to buy a 12 percent stake in Far EasTone.

China Mobile is a a key player in promoting the TD-SCDMA standard as it is investing billions of dollars to set up a third-generation (3G) mobile network in the world's largest mobile phone market.

Smaller Chinese operators China Unicom <0762.HK> and China Telecom <0728.HK> have said they will use the WDCMA standard and CDMA2000 standard, respectively.

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CapitaLand gets $3.7 bln credit lines from China banks 08 Jun 2009 08:22

SINGAPORE, June 8 (Reuters) - CapitaLand <CATL.SI>, Southeast Asia's biggest developer, said on Monday it has arranged for credit lines of up to 25 billion yuan ($3.7 billion) from two major Chinese banks to fund its China projects.

Bank of China <3988.HK> <601988.SS> and Industrial and Commercial Bank of China <1398.HK> <601398.SS> will provide the loans to the Singapore developer.

CapitaLand also said on Monday it "soft launched" a retail mall in Beijing on June 5 and that it will build a integrated development in Ningbo City called Raffles City Ningo that will comprise a mall, offices and serviced residences.

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Beijing Capital Land says Jan-May sales soar 210 pct 05 Jun 2009 10:58

HONG KONG, June 5 (Reuters) - Chinese real estate developer Beijing Capital Land <2868.HK> said on Friday that revenues from apartment sales in the first five months soared 210 percent from a year ago, as market demand remained strong on improved outlook for the mainland property sector.

The firm sold about 3.86 billion yuan ($564.9 million) worth of flats in the first five months, with the contracted sales area surging 300 percent from a year ago to 422,000 square metres, according to a newsletter from the developer.

The developer said its contracted sales in the month of May were at historical high of 1.31 billion yuan, thanks to the launch of more new projects, despite an 8.8 percent month-on-month drop in transaction volumes in Beijing and a 16 percent month-on-month fall in Tianjin.

Beijing Capital Land had earlier this year set an ambitious sales target of 6 billion yuan for 2009.

The company shares rose 2.5 percent to HK$3.25 in mid-morning trade on Friday, outperforming a 0.30 percent rise in the broader market <.HSI>. (US$1=HK$7.8=6.833 yuan

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• MAY 27, 2009

Volkswagen Eyes China Venture

Auto Maker Weighs Deal With BYD on Lithium-Ion Battery Technology

By CHRISTOPH RAUWALD and NORIHIKO SHIROUZU

Volkswagen AG said it is exploring options for teaming up with China's BYD Co. on hybrid and electric vehicles powered by lithium batteries -- highlighting auto makers' efforts to secure battery supplies for alternative-energy vehicles.

The companies are exploring the possibility that Shenzhen-based BYD would supply a lithium-ion battery technology it developed for plug-in hybrid and all-electric battery-powered cars, people familiar with the negotiations said.

Volkswagen, based in Wolfsburg, Germany, would be the first major automotive partner for BYD, which moved into the spotlight last year when a company controlled by investor Warren Buffett invested $230 million in the Chinese car maker, mainly because of BYD's cost-effective technology.

BYD -- one of the world's biggest producers of cellphone batteries and a fledgling, fast-rising auto maker in China -- caused a stir in December by launching a plug-in car ahead of more-established foreign rivals.

"Hybrids and electric vehicles will play an increasingly important role," Ulrich Hackenberg, VW's executive board member for technical development, said in a prepared statement. "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities."

View Full Image

Bloomberg News

BYD makes plug-in hybrid and electric-battery-powered cars. Above, the contacts used to recharge a BYD auto.

BYD also is talking to Ford Motor Co. and another European auto maker about similar arrangements, the people said. The status of those negotiations wasn't clear.

"We are always in discussions with many suppliers as a standard course of our business, but we have nothing to share at this time," said Whitney Small, a Ford spokeswoman in Bangkok.

Concerns over gasoline shortages and climate change have prompted a global race to commercialize affordable electric-battery cars and plug-in hybrids that get most of their power from batteries.

A big obstacle is insufficient industry capacity to produce lithium-ion batteries, which is pushing auto makers like VW to team up with multiple lithium-ion battery suppliers. Aside from BYD, Volkswagen has signed letters of intent with Sanyo Electric Co. and Toshiba Corp., both of Japan. Volkswagen's premium Audi AG brand last year agreed to cooperate with Sanyo on developing lithium-ion batteries, saying the new technology should be ready for large-scale production in 2012.

Getty Images

Concerns over gasoline shortages and climate change have prompted a global race to commercialize affordable electric-battery cars and plug-in hybrids that get most of their power from batteries.

While lithium-ion batteries are widely seen as the technology that will ultimately power most plug-in cars, the batteries' use has been hindered by a relatively high price, limited durability and safety concerns. BYD says it has largely resolved those issues by turning to a safer, more cost-effective technology: iron-phosphate-based lithium-ion technology.

Lithium-ion batteries produced in China are generally about half the cost of such batteries made in Japan and the West. Costs may rise as Chinese auto makers invest to improve their technology, however.

Germany's Daimler AG last week announced it will buy a 10% stake in Silicon Valley electric-vehicle start-up Tesla Motors Inc. for "a sum in the double-digit millions of euros." Daimler and Tesla already were moving to integrate Tesla's lithium-ion battery packs and charging electronics into the first 1,000 electric versions of Daimler's tiny Smart two-seater. As part of the closer relationship, Daimler and Tesla will intensify development of battery systems, electric-drive systems and individual vehicle projects.

Write to Christoph Rauwald at christoph.rauwald@dowjones.com

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Singapore's Olam sells stake to Temasek for $300 mln 01 Jun 2009 07:30

SINGAPORE, June 1 (Reuters) - Singapore's Olam International said on Monday it has agreed to sell 13.76 percent of its enlarged capital to state investor Temasek Holdings [TEM.UL] for S$437.5 million ($303.2 million).

Olam said the deal, which would make Temasek the second biggest shareholder in the commodity company, is aimed to boost its future growth. ($1=1.443 Singapore Dollar)

Stocks and factors to watch: 
    -- OLAM INTERNATIONAL <OLAM.SI> 
    - Olam International said on Monday it has agreed to sell 
13.76 percent of its enlarged capital to state investor Temasek 
Holdings [TEM.UL] for S$437.5 million ($303.2 million). 
[ID:nSIN420474] 
    Olam said the deal, which would make Temasek the second 
biggest shareholder in the commodity company, is aimed to boost 
its future growth. 

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BOCI Ups China Power To Buy; Better Asset Mix

1431 [Dow Jones] STOCK CALL: BOCI upgrades China Power (2380.HK) to Buy from Hold, target price to HK$2.70 vs HK$1.70; says China Power undergoing transformation to have better asset portfolio, will benefit from new energy projects of parent China Power Investment Group, leader in hydropower, nuclear power development among 5 major players. House assumes Wuling acquisition in earnings model, raises FY09-11 EPS forecasts by 51%, 67%, 48% respectively. Estimates Wuling, potentially other asset injections will raise DCF-based valuation of China Power, as profit margins of hydropower units much higher; adds, hydropower tariff will be gradually raised to match coal-fired benchmark, margins may expand further. Stock down 1.3% at HK$2.36; HSI +2.4%. (RLI)

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MidAmerican Energy, BYD Partner on Battery Storage Initiative

May 27,2009

Most of the excitement related to BYD (BYDDY.PK) has centered on the remarkable advances the company has made in applying its proprietary battery technology to electric vehicles such as the e6 model which I wrote about earlier this month. BYD’s innovations in battery technology have made widespread adoption of electric vehicles likely for the first time.

According to a recent blog post by Marc Gunther, Berkshire Hathaway (BRK.A) subsidiary MidAmerican Energy now plans to utilize the same battery technology to store power generated from renewable resources such as solar and wind power. Mr. Gunther has covered BYD in the past for Fortune Magazine and was the main source for an article I wrote in April regarding BYD.

Positioning MidAmerican for Cap and Trade

MidAmerican Energy’s Chairman David Sokol is on record in a Washington Post editorial opposing the Obama Administration’s “cap and trade” approach to dealing with climate change. Sokol’s arguments center on the reality that cap and trade will amount to a tax on consumers regardless of mitigation efforts the government might take to issue tax rebates to low income consumers to offset higher energy prices. Sokol also expressed his views on the subject in a CNN interview:

Here is a link to the video.

Regardless of his opposition, Sokol appears to understand that some form of cap and trade will be implemented based on political realities and he has taken steps to prepare MidAmerican for this reality. As Warren Buffett noted in his recent letter to shareholders, MidAmerican is the largest producer in the nation of energy generated through wind power. Over $1.8 billion was spent in 2008 alone on investments in wind generation capability.

However, as Sokol noted in the video, one of the main problems with wind and solar energy is that power can only be generated when the wind is blowing or the sun is shining. Technology is needed to store the energy that is produced for later use.

Leveraging BYD Battery Technology

Based on Marc Gunther’s blog post, MidAmerican will soon harness BYD’s battery technology to tackle the storage problem:

“We’ve never really had storage capability on utility systems,” Sokol told me recently, by phone. “Given the progress BYD has made on the technology of batteries for electric vehicles, the question is, how do we ramp that technology up so that we can use it for multiple purposes in the utility world?

“Probably the most obvious is the ability to store intermittent renewable resources, such as wind or solar,” Sokol said.

Gunther reports that MidAmerican will soon implement the battery technology in Portland on a limited scale while BYD will do the same on a larger scale in China:

This fall, MidAmerican will build a 2 megawatt storage facility using BYD batteries at an existing substation in Portland, Oregon, where it operates the local utility, Pacific Power. BYD, meanwhile, is building a bigger storage facility in China, and plans to build a third one in a still-undisclosed location on in southern California. That’s about all I can tell you because BYD is reluctant to talk about its research.

The 2 megawatts of battery storage in Portland will allow MidAmerican to test BYD batteries to see how well they charge, what control systems are needed to discharge the electricity and to analyze their reliability and cost. “It will let us do a fair amount of testing to understand the economics of a 100 or 200 megawatt storage facility to back up wind,” Sokol says.

Based on BYD’s success applying their technology to electric vehicles and dramatically extending driving range, it is reasonable to expect that the same technology could be used in the manner that MidAmerican and other utilities require in order to economically harness wind and solar power. The utilities that are best positioned for the new cap and trade regime will be those that generate power from sources that do not result in carbon emissions.

Regardless of Sokol’s doubts about the viability of cap and trade as a public policy, he is positioning MidAmerican well for the new reality. That’s what Berkshire Hathaway shareholders would expect from a man reported to be at the top of the “short list” to eventually succeed Warren Buffett as CEO of Berkshire Hathaway.

Disclosure: The author owns shares of Berkshire Hathaway. MidAmerican energy is a subsidiary of Berkshire Hathaway. Berkshire Hathaway owns shares of BYD.

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