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M&A Activity In Singapore Gets Heated Up
Singapore Market Commentary | 20 November 2015
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By: Louis Kent Lee
Articles (199) Profile

The terrorist attack on Paris have caused significant selling pressures in travel-related stocks; Priceline, Expedia, on fears that it would hurt tourism.

Although markets rebounded in the U.S. on bets that the terrorist attacks in Paris would have limited economic impact, the key to the market’s direction remains focused on expectations that the Fed could hike interest rates in December, while the European Central Bank is likely to expand its Quantitative Easing following the tragic events in France.

In the lion city, data released by the URA revealed October’s developer’s non-landed home sales rose 60 percent month on month to 546 units. However, it was highlighted by property consultants that overall private residential market remains subdued and developer sales activity is expected to remain sluggish in November and December.

Rating agency Moody’s has placed Noble on review for a possible downgrade to junk status, given its weaker than expected liquidity profile and still high leverage.

In the month of November, we saw three privatisation deals with notable inclusions on the acquisition of Tiger Airways by Singapore Airlines.

For the past two months, we have seen a flurry of mergers and acquisition activities in the lion city, with a deal value of $1.8 billion.

Comparing this to the IPO market we see in Singapore, the contrast is huge as we have only seen three new listings in 1H15 raising some US$228 million.

Other companies that could potentially hit the privatisation trial include Neptune Orient Lines and HTL, where both have made announcements that their major shareholders are in negotiation with third parties on possible transactions.

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.

Singapore Airlines  9.520 +0.03 +0.32%   
Business: Co provides air transportation services to destinations spanning a network spread over 6 continents. [FY19 Turnover] SIA (80%), Budget Aviation (10.5%), SilkAir (6.2%), SIAEC (3.1%), others (0.2%).

Insight: May-19, FY19 revenue edged up 3.3% to $16.3b. Pass... Read More

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