Singapore’s sovereign fund Temasek Holdings has had a busy past year with several companies under its control having undergone or proposed some form of business restructuring.

Last week, The Edge Singapore looked at the slew of recent restructuring deals involving companies ranging from Sembcorp Industries, Sembcorp Marine, Keppel Corp and CapitaLand as they reorientate and reorganise themselves to face new market conditions. Analysts are even starting to wonder if a merger between SIA Engineering and ST Engineering’s aerospace unit would take place.

Maybank Kim Eng’s Thilan Wickramasinghe is one analyst who expects more restructuring exercises on the horizon, particularly among large-cap companies pursuing asset-light strategies and seeking better valuations. He notes in a March 29 report that there has been a rising pace in restructurings in Singapore due to structural changes caused by the Covid-19 pandemic and valuation dislocations. In the last six months, CapitaLand, Wilmar International, Jardine Matheson Holdings, Keppel and Olam International have undergone some sort of restructuring.

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