GLP's privatisation - why every vote and voter counts

Singapore

IN the first nine months of 2017, we have seen a flurry of merger and acquisition (M&A) activities in Singapore and globally. One such acquisition exercise that has attracted worldwide attention is the proposed acquisition and privatisation of Global Logistic Properties (GLP). If approved by shareholders in November 2017, it will be the largest privatisation of a listed company in Asia.

Do retail investors lose out when a company undergoes privatisation? Not necessarily. Minority shareholders sometimes tell us that they feel compelled to tender their shares for a "lowball price". However, this year, the majority of successful buyouts have been at healthy premiums to prevailing market prices, while some, as in the case of GLP, have been at levels higher than historical prices.