Maybank Kim Eng analyst Thilan Wickramasinghe expects more restructuring exercises on the horizon, particularly amongst large-cap companies pursuing asset-light strategies, though their timings will be hard to predict.

Wickramasinghe notes a rising pace in restructurings in Singapore due to structural changes caused by Covid-19 and valuation dislocations. Notable restructurings or privatisations announced in the last six months include exercises by CapitaLand, Wilmar International, Jardine Matheson Holdings, Keppel Corporation, and Olam International.

Wickramasinghe points out that permanent changes to operating environments have instigated the structurings, citing declining office demand and property cooling measures as contributing factors for CapitaLand’s proposed restructuring.

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