Merger & acquisition activity involving Singapore companies expected to increase as sellers now more willing to negotiate following improved stock valuations, says DBS Vickers.

Notes buyers encouraged by better visibility of Singapore companies as worst of global crisis now over; “in addition to growth, Singapore companies are sitting on high net cash with 65% of them capable of generating free cash flow.” 

 

Notes Singapore firms sitting on $146.5 billion of net cash, thanks to capex discipline, capital restructuring in last 2 years. Says private equity firms now in fund raising mode, getting ready to invest from next year. 

 

Tips companies in consumer, oil & gas, technology sectors as potential targets, including Asiatravel.com (5AM.SG), Hi-P (H17.SG), Meiban (M24.SG), Mermaid Maritime, (DU4.SG), JES (EG0.SG), Biosensors (B20.SG), OKP (5CF.SG), Wheelock Properties (M35.SG).