Cash-flush buyers taking billions off Singapore bourse via privatisations

Low valuations, poor trading liquidity, strong corporate balance sheets and cheap funding also driving rising buyout trend

Published Tue, Apr 16, 2019 · 09:50 PM

Privatisation

Singapore

PRIVATISATION has picked up pace this year, and is likely to continue, as acquirers - strategic investors, private equity firms and entrepreneurs - continue to target listed corporates.

There have been about a dozen ongoing and completed takeout offers this year, mostly concentrated in the unloved small- to mid-cap space that is struggling with industry disruption, diminishing free float, and poor trading interest.

Their aggregate market cap adds up to close to S$5 billion - albeit still a stretch to beat 2018's figure, which included Global Logistic Properties' record S$16 billion privatisation deal.

Atin Kukreja, CEO of financial advisory firm Rippledot, cites low valuations, poor trading liquidity, stro…

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