privatisation

Croesus Retail Trust co-founder speaks up about going private

SINGAPORE (Jan 12): Last September, Croesus Retail Trust (CRT) was taken private by Blackstone Group at a higher price than it ever garnered in the public market.

The trust had traded below its net asset value (NAV) for most of the 4½ years it was listed.

“I was obsessed with closing the valuation gap,” says Jeremy Yong, who was managing director of CRT’s trustee-manager and co-founded the trust.

“We needed to make sure we were trading at fair value so that our acquisition currency was strong enough to acquire new assets,” he adds.

CityDev's privatisation bid for M&C bodes well for both, with or without deal: Phillip Capital

SINGAPORE (Dec 12): Phillip Capital is maintaining its “accumulate” rating on City Developments (CityDev) with a target price of $12.10, after the group announced its final takeover offer for the remaining shares of Millennium & Copthorne (M&C) it doesn’t own.

In a Tuesday report, analyst Dehong Tan notes that the new offer of 620 pence per share is 12% higher than previously, and represents an attractive value for CityDev as it is pegged to 0.75 times book value despite it being at a 39% premium to the pre-offer last close price.

Fu Yu to privatise LCTH for $20.3 mil via selective capital repayment

SINGAPORE (Dec 8): Fu Yu Corporation, the manufacturer of precision plastic components, plans to privatise its subsidiary, LCTH Corporation, through a selective capital repayment exercise (SCR) valued at around RM61.3 million ($20.3 million).

LCTH is listed on Bursa Malaysia and focuses on the precision manufacturing of tools and plastic products in Malaysia. As at 6 Dec, it has a share capital of RM169.9 million comprising 360 million ordinary shares, of which about 254.3 million are owned by Fu Yu to represent an equity interest of 70.64%.

GLP shareholders vote in favour of $16 bil privatisation deal

SINGAPORE (Nov 30): Global Logistic Properties (GLP) says its proposed $16 billion acquisition by Nesta Investment Holdings and subsequent privatisation has been approved on the back of “overwhelming shareholder support”.

Nesta Investment is a subsidiary of a management-backed Chinese consortium including private equity firms Hillhouse Capital Management and Hopu Investment Management.

It was announced in July that GLP accepted the consortium’s takeover offer of $3.38 per share in cash.

Why SembMarine is unlikely to be privatised anytime soon

SINGAPORE (July 11): CIMB Research is maintaining its “add” rating on Sembcorp Marine (SMM) with an unchanged target price of $1.88.

In a Tuesday report, analyst Lim Siew Khee says in the next decade, SMM could be Singapore’s only mega yard left that can compete head on with the Koreans when it comes to large-scale non-rig structures.

While Keppel mothballs its unused yards, SMM requires a sustainable order book of about $4-5 billion to keep its yards afloat.

Wheelock Properties a potential candidate for privatisation, says Phillip

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.

Straits Trading stands tall with majority stake in ARA Asset Management

SINGAPORE (May 17): OCBC Investment Research is maintaining its “buy” call on Straits Trading Company with an unchanged fair value estimate of $2.73, after it posted 1Q results which the research house deems to mark a “firm start to the year” for the group.

3 reasons to accumulate on UMS, where all systems go

SINGAPORE (May 17): DBS Vickers Securities is maintaining its “buy” call on precision engineering group UMS Holdings, raising its target price on the stock to $1.07 from 73 cents previously after the group recorded its highest quarterly earnings in over a decade.

(See also: UMS 1Q earnings treble to $11.2 mil on doubling of sales)

Will the Singapore stock market continue to shrink?

SINGAPORE (May 5): Large corporations, private-equity players and even controlling shareholders are snapping up locally-listed companies.

Last year, the Singapore Exchange (SGX) saw 27 privatisations excluding that of REIT manager ARA Asset Management, as well as an offer from Dutch beverage giant Jacobs Douwe Egbert (JDE) for instant coffee producer Super Group.  

Growing digital trends will propel stocks in this sector further ahead

SINGAPORE (March 31): The semiconductor sector has returned 40.5% this year, based on the average performance of 12 stocks compiled by The Edge Singapore.

All but two registered double-digit growth in market valuations: Manufacturing Integration Technology, which makes equipment used in the front- and back-end processes of integrated circuit assembly, saw its share price dip 7.5% this year.

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