In a recent discussion, an analyst who declined to be named says Singapore has always had a lot of deep-value plays which trade at very low valuations for years.
However, “when the major shareholder gets fed up and makes an offer, he won’t make a super high offer, given the deep discount the stock has been trading at. So, the company becomes ripe for activism,” he adds.
Take the example of TTJ Holdings. On May 20, TTJ’s major shareholders made a voluntary conditional offer (VCO) for the shares in TTJ they do not own at $0.23 per share, via an entity called THC Venture. The offer values TTJ at $80.38 million.