Showing posts with label Privatisation. Show all posts
Showing posts with label Privatisation. Show all posts

Friday, June 9, 2017


SIA stock
Even as the stocks markets have already digested the fact that SIA incurred a surprising fourth-quarter net loss of S$138 million, its first in five years, SIA Chief said in a report dated 7 Jun 2017 that jobs at SIA are likely to be cut as part of the airline’s business review. When I heard this news, I was a bit surprised and also not surprised. Surprised in the sense that has SIA’s business gone so bad that the prospect of job cuts has to be factored in? Unsurprised as all along the airline business is really a very competitive one. Even investing legend Warren Buffet has his saying that he is not really into airline stocks. The fact being traditionally when the economy is good, cost of aviation oil is high and when the economy is not good, the demand for overseas travel and hence air flight demand is not strong too.

Monday, June 5, 2017


Wheelock Properties stock
WHEELOCK PROPERTIES stock has been singled out as a prime privatization candidate by Phillip Securities in its research report dated 2nd Jun 2017. The report might have triggered the 4.6% increase in the stock price of Wheelock Properties on the same day of the release of the report, accompanied by strong volume. Phillip Securities has a trading buy target on Wheelock Properties at $2.28 which means a further upside of 25% from the current stock price of $1.82.

Sunday, May 28, 2017


Hi-P stock
In a DBS report dated 23 May 2017, analyst Lee Keng Ling wrote that Hi-P which provides one-stop solutions for the wireless (smartphones), computer peripherals and consumer electronics might be a potential takeover target for global players looking to build a base in Asia. The analyst had a target price of $1.07 for Hi-P stock which implies a potential upside of 23% for the stock (based on the stock closing price as of 24 May 2017).

Friday, April 28, 2017


M1 stock
M1 stock closed today (28 Apr 2017), unchanged at $2.17. It has been reported that a number of foreign firms including a Chinese mining company has expressed interest in M1 and hence investors who lap up M1 stock now might want to buy into news and speculating of a good exit offer. In an earlier post, I have shared my thinking on what could be a possible exit price for M1 and you can read the post here.


M1 stock
Dear readers, as you would have known now, a number of overseas companies, including a Chinese mining company are reportedly vying to acquire M1. There could hence be a possibility that M1 stock would be the next Singapore stocks to be taken private. M1 stock rose by 3.8% on increased volume yesterday (27 Apr 2017). Investors who bought into M1 stock yesterday might have done so due to the thinking that the final deal for M1 would translate into an exit price much higher than the $2.17 per share that M1 stock traded at yesterday.

Sunday, April 9, 2017


Osim stock
Osim stock, which was delisted from Singapore Stocks Exchange would be seeking a listing on the Hong Kong stocks markets as V3 stock. This is of interest to me since when Osim was delisted from Singapore stocks markets, I have thought that Osim would be kept as a private entity. I understand that proceeds from the V3 IPO would be used to repay a loan of $321.9 million obtained by Osim as well as for the acquisition in Futuristic, a Singapore-based store fixtures manufacturer, of a 69% stake.

Sunday, March 19, 2017


Privatisation stocks
The news that M1’s three largest shareholders are reviewing their stakes in M1 has led to speculation on the possible privatization of M1 stock. M1 stock responded in return, soaring some 7.9% on 17 Mar 2017 before the trading halt of the stock. It was reported that talks of potential divestment of listed Telco firms has come as early as last year as the major Telco players brace themselves for the fourth Telco player into the stocks markets. Singtel and Starhub stocks also benefitted from the speculation, with each rallying last Friday. I believe the stocks markets are in the mood for looking at other possible names of privatization candidates too. There are many of these being floated around and I list below some of these potential privatization candidates:

Friday, March 3, 2017


Bukit Sembawang stock, Ho Bee Stock, Wing Tai stockBukit Sembawang stock, a sleepy stock rallied by almost 8% after DBS issued a report, crowning it the “Landlord King”. There has been speculation that Bukit Sembawang stock would finally be taken private after years of speculation, given that this is an undervalued stock (however with yesterday’s price rally, the stock has a Price-to-Book ratio of 1.062 now). Many think that the recent in property stocks may finally pave the way open for the privatization of the often-cited property plays in Bukit Sembawang stock, Wing Tai Properties and Ho Bee Properties Limited stock. Let us take a look at the fundamentals of these stocks.

Friday, December 9, 2016


Against the current economy backdrop, we have seen many stocks have been taken private in year 2016 to-date. Most of the parent companies which have privatized their company counters made use of the low valuation of the stocks as an opportunity to delist their stocks in the current stocks markets environment. Some investors like to buy stocks which are good candidates for privatization due to the perceived capital appreciation should these stocks be privatized. And if the stocks were to pay dividends, investors could reap these dividends while waiting for capital appreciation.

Friday, August 12, 2016

Will these stocks rally next?

Singapore stocks were trading in a lacklustre manner until the proposed privatization of SMRT stock and then Sim Lian stock which adds to the element of speculation (of which are the next stocks to be privatized) in the Singapore markets among the investing community. In the post of 10 Aug 2016, I have listed three such potential stocks: Ying Li international, Wheelock Properties and Ho Bee Land. As what I have expected, there are much interest in unraveling which are the next potential stocks to be privatized and an article which I have read sums it all well by listing not just a few of these potential stock but a galore of eighteen of them and here they are:

Wednesday, August 10, 2016

Another merger & acquisition, which stock is next?

Following the proposed delisting of SMRT stock, another stock will be taken private next. This time round, it is Sim Lian stock whose founder decided to delist the company with an offer of $1.08. Today, Sim Lian stock rallied up by around 13.3% to close the trading day at $1.065.

Sunday, July 24, 2016

Would you buy into this stock now?

SMRT stock has resumed trading after the announcement that Temasek Holdings will be taking SMRT stock private. The offer price is $1.68 and SMRT stock rallied after the trading halt to trade close to the offer price. Investors who went in definitely wanted to get SMRT stock for as close a price to SMRT’s last traded price before the trading halt but I would not be surprised if some investors choose to buy at a price very close to the offer price, say at $1.66. Why is that so?

Thursday, July 21, 2016

Will these Singapore stocks rally today?

From what I have noticed, whenever there is a buyout of a Temasek-linked company by Temasek Holdings, there will be interest in the stocks of other Temasek-linked companies as some investors speculate whether they will be buyout targets by Temasek next. Their speculation might send the stock price of these stocks surging.

Wednesday, July 20, 2016

SMRT stock to be privatised, what stocks could be next?

Today, SMRT and Temasek announced that Temasek Holdings will be taking SMRT private, buying the remaining of the shares that it does not currently own at an offer price of $1.68 per share. The price “One Six Eight” will naturally be linked, in mandarin to “Yi Lu Fa” (meaning prosperity all the way) and not only that, “Lu” is “Road” in mandarin, hence I thought that is all the more, the “right” price for SMRT stock.

Wednesday, March 30, 2016

Will this Singapore stock continue to rally?

Courts Asia stock rallied by a good 7.7% on 29 Mar 2016. Courts Asia stock is a “sleepy” stock and while others may be wondering what attributes to the rally of the stock, I am not surprised. Why? Well, there have been talks that Courts Asia could be privatized after Osim (you can read the article here . In a stocks markets where there are not many bullish factors, some investors may invest on potential privatization plays and possible privatization plays always include stocks which are trading below book value and which have good fundamentals; these include Wheelock Properties stock, Ho Bee Land stock and etc.

Sunday, March 13, 2016

What Singapore stocks could be privatized next?

Following OSim’s founder bid to take his firm private, it is inevitable that some investors are turning their focus on identifying the next possible Singapore privatization plays. This is especially so against the current stocks markets environment where there are not much of a catalyst for buying. So what are the next possible Singapore stocks which could be privatized next?

Friday, March 11, 2016

Could there be more privatization stocks in play?

So we have Osim stock, which will become privatized if shareholders approve of the delisting decision. The potential delisting of Osim stock is yet another delisting of a good stock in the Singapore stocks markets but more importantly, it points to one fact of the SGX, collectively with many earlier delisting of stocks in Singapore such as Goodpack: that apart from not being able to attract new IPOs, there can be a trend of the current listed companies deciding to delist off SGX. There could be a couple of reasons behind each and every stock seeking a delist but I would not be surprised that low trading liquidity in the Singapore stocks markets could be a reason.

Tuesday, January 5, 2016

Is Privatisation of this stock possible?

Following an article which I have read online, I would think that my previous sharing with readers on the possibility of more privatization of Singapore companies, especially those whose share prices have been lacklustre is still valid. Looking at how TigerAir (IPO price: $1.50) has an exit offer of $0.45, NOL (IPO price: $4) with an exit offer of $1.30; it is still possible for a Temasek-linked company in Sembcorp Marine to be privatized, even though its stock price has languished. For the record, Sembcorp Marine stock traded at $1.72 yesterday (4 Jan 2016), back in year 2011, the stock was trading at a high of $5.88.

Tuesday, December 8, 2015

What are the next stocks to be privatized?

NOL stock receives an offer of $1.30 per share. If investors can recall, the IPO of NOL stock back in year 1981 was $4 a share (you can view a newspaper article here). The offer hence represents a discount of 67.5% off the IPO price of NOL stock. Similarly, another Temasek-linked company, Tiger Airways receives an offer of $0.41 per share for the proposed delisting. Compares this offer with Tiger Airways IPO price of $1.50, the discount is around 72.66% off Tiger Airways’ IPO price.

Monday, December 29, 2014

Privatization stocks

As I read my April 2014 posts of SSI in a bid to conclude my posts on SSI for the year, I noticed how April 2014 was a month when many investors turned speculative, speculating on which of the stocks on SGX will be taken private next. We have Hotel Properties Limited, Capital Malls Asia and Goodpack as some of the stocks on SGX which were taken private for year 2014. Going forward to 2015, some analysts predict that there will still be some mergers, acquisitions and consolidation in the stock companies as companies with good fundamentals and trading at a good discount off their book value are being bought over by cash-rich investors.
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