The Edge Singapore, in its June 20th 2016 issue, highlighted the following companies in the property sector as possible candidates for privatisation:
|
Company
|
Price to Book Value (Times)
as at 14 June 2016
|
|
Bukit Sembawang Estates
|
0.94
|
|
GuocoLand
|
0.64
|
|
GL
|
0.99
|
|
Ho Bee Land
|
0.55
|
|
Hotel Properties
|
1.05
|
|
Metro Holdings
|
0.62
|
|
OUE
|
0.35
|
|
Perennial Real Estate Holdings
|
0.56
|
|
United Engineers
|
0.78
|
|
Wheelock Properties
|
0.57
|
|
Wing Tai Holdings
|
0.34
|
Other companies also cited but with a lesser chance of privatisation included Capitaland, City Developments, Fraser Centrepoint Ltd, Global Logistics Properties, Hongkong Land, UOL Group, Yanlord Land Group and Ying Li Intl Real Estate.
The possible reasons for privatisation included the following:
- Change of major shareholder
- Tight float
- Deep discount to book value
With privatisation and a buyout offer, shareholders often stand to gain handsome profits. The companies bear some watching out for sudden price and volume movements. One does have to be patient though. A little bit of luck in picking the right counter also helps.
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