Tuesday, July 21, 2009

Management expects the successful launch of projects in Singapore to enhance the - Steady amid property downturn

Management expects the successful launch of projects in Singapore to enhance the group’s cashflow and strengthen its balance sheet position. F&N said it will look to expand its F&B activities organically, while evaluating M&A opportunities.

Management explained that the rights issue and the Alexandra Technopark transaction were meant to improve FCOT’s balance sheet to help secure refinancing of its debt. F&N said there is no need to raise capital at the holding company, given strong cashflow and available funding to meet its FCOT rights entitlement.

The priority in the F&B segment is to look at ways to capture new opportunities following the cessation of the bottling arrangement with Coca-Cola. F&N believes it can enhance its brand presence in Singapore and at the same time grow its 100 plus isotonic drink regionally. Elsewhere, there is scope to grow its dairy business organically, while APB continues to invest in new markets in Asia.

The group appears to have done well, with strong responses to its property projects, including Caspian, St Martin’s Place, 8@Woodleigh and Waterfront Waves. In Australia and China, the group is selectively launching projects and has shelved projects in the UK.

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