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Keppel Land’s Privatisation Drama, Who’s Speculated Next For Privatisation?
Perspective | 02 April 2015
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By: Louis Kent Lee
Articles (199) Profile

This week has been interesting, especially in the privatisation bid scene.

Keppel Corp, the blue chip that many Singaporean knows, has failed to hit compulsory acquisition threshold for the privatisation bid of Keppel Land.

As of 31 March 2015, Keppel Corp owned 95.1 percent of Keppel Land, just 0.4 percent shy of the acquisition threshold of 95.5 percent.

Had it succeeded in crossing the threshold, the price offered for the shares in Keppel Land could have been bumped up by Keppel Corp to $4.60.

That was what we believed most vested investors were optimistically positive about previously.

Now that it didn’t cross this threshold, the privatisation price for Keppel Land will be set at $4.38 per share.

The remaining shareholders of Keppel Land who have not tendered by now will have a right to require Keppel Corp to acquire their shares at $4.38 each.

Who’s On The Possible Privatisation List?

In a recent research note, brokerage RHB gave a speculated thought on some other Singapore listed companies that might be taken private.

They are: United Industrial Corp, Great Eastern Holdings, Wheelock Properties, Wing Tai Holdings, Ho Bee Land, and Hong Fok Corp.

Among the lot, we think that the possibilities for Great Eastern Holdings to be delisted might be a tad lesser though.

Interestingly, apart from Great Eastern Holdings, the rest of the counters mentioned are all trading below the price to book value of 1. (range: 0.49 – 0.7)

The privatisation game for investors can be good valued investments when done at the right time.

The privatisation would be a windfall gain for investors due to the offeror’s likeliness of giving a decent premium over the last traded price of that company’s share to entice minority shareholders to accept the bid.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

Please click here for more information about this author.

United Industrial Corp  2.900 +0.01 +0.35%   
Business: Core business in property development & investment. [FY17 Turnover] Property trading (58.8%), property investment (21.8%), hotel ops (11.5%), tech (7.7%), others (0.2%).

Insight: Nov-18, 9M18 revenue slumped 51.4% to $500m mainly... Read More
Great Eastern Hldgs  24.650 -- --   
Business: Unit of OCBC. Turnover comprised of gross premiums, invs, interest and rental income, fees & other income as well as gain/loss on sale of invs.

Insight: May-19, 1Q19 gross premiums rose 6.5% partly due t... Read More
Wing Tai Hldgs  2.080 -0.01 -0.48%   
Business: Singapore-based property developer and lifestyle company. [FY18 Turnover] Development properties (51.5%), retail (36.5%), investment properties (9.6%), others (2.4%).

Insight: Feb-19, 1H19 revenue rose 7.1% to $193.9m largely ... Read More
Ho Bee Land  2.310 -- --   
Business: Invests in & develops real estate properties in Singapore. [FY18 Turnover] Rental income (91.3%), sale of development properties (8.7%).

Insight: Apr-19, 1Q19 revenue rose 7.7% due to increased re... Read More
Hong Fok Corp  0.870 +0.010 +1.16%   
Business: Engaged in ppty invs, ppty devt, ppty mgt & invs hldg & mgt. [FY18 Turnover] Ppty investment (49.8%), ppty development and construction (48.7%), ppty management and others (1.5%).

Insight: May-19, 1Q19 revenue jumped 53.3% mainly due to th... Read More


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