SINGAPORE (June 2): Phillip Capital is starting coverage on Wheelock Properties Singapore (WPSG) with a "buy” and a target price of $2.28 given the likelihood of privatisation and depressed valuation compared to its peers.
In a Friday report, analyst Peter Ng says WPSG could be privatised by Hongkong-listed parent Wheelock and Company as shares of WPSG are thinly traded and has been trading at a significant 40% discount to its NAV. Additionally, the group has not sought for funds from the equity market for more than 11 years since 2006.
If the privatisation takes place, it won't be a first for parent, Wheelock and Co. In July 2010, Wheelock Properties HK was take private for HK$13 ($2.31) each following the sharp decline in share price caused by the 2008 global financial crisis
