Daily Briefing: StanChart-owned investor offers Tat Hong privatisation for $376.6m; Grab eyes bike-hailing app launch

And here's why Singaporean developers are vulnerable to profit shocks.

From Bloomberg Finance:

The Bank for International Settlements warned that big Asian developers like those in Singapore are more vulnerable to profit shocks due to worsened conditions in the building and construction sector.

"The 'sector’s deteriorating fundamentals give reason for concern,' said the Basel, Switzerland-based institution, which watches over global financial stability. Many firms’ returns on assets are below their costs of debt, the BIS said in a quarterly review, citing a study of developers in China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

Higher interest rates, sinking property prices or falling currencies are shocks that could worsen developers’ financial health, with the potential for significant economic repercussions, according to the organization known as the central banks’ central bank. Even without external jolts, falling returns on assets and declining interest coverage ratios 'could pose problems' for the firms, it said."

Read more here.

From Deal Street Asia:

Standard Chartered-owned THSC Investments is eyeing the privatisation of crawler crane rental company Tat Hong through a $376.6m (US$286m) cash offer.

"THSC Investments, owned by Standard Chartered Private Equity (SCPE) and TH60 Investments, has made an $0.50 per share pre-conditional cash offer for all the shares of Tat Hong. The deal will be financed through borrowings from financial institutions. TH60 is a special purposed vehicle owned by Tat Hong’s CEO Roland Ng. 

'The offer represents an opportunity for shareholders to exit their investments in Tat Hong,' according to an announcement."

Read more here.

From Tech in Asia:

Grab will launch an app that will allow customers to hire bicycles and electric scooters from a variety of providers. GrabCycle Beta will integrate offerings from oBike, GBikes, Anywheel, and Popscoot.

"It will be piloted on Sentosa Island in Singapore before rolling out to other locations. Users can pay for rentals with GrabPay, Grab’s payments solution, which it is also rolling out to food stalls and retail outlets in Singapore.

The move is similar to what its ride-hailing counterpart Didi Chuxing has done in China. Didi’s bike-sharing feature aggregates its own bicycles with those from bike-sharing giant Ofo."

Read more here.

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