Lian Beng’s lowball privatisation offer raises urgency of addressing low market valuations
Japan ’s bourse operator says it will ask companies trading below book value to come up with plans to lift their valuations
THE controlling shareholders of Lian Beng Group unveiled plans this past week to take the construction and property development company private at less than half its book value – using a well-known loophole related to compulsory acquisitions that the government has already decided to plug.
The independent directors (IDs) of Lian Beng should ensure minority shareholders of the company are properly informed about the imminent changes in the law, of course.
Yet, unless the IDs can also promise that Lian Beng will pursue a credible programme to improve the long-term market value of its shares if the company remains listed, many minority investors may well decide to just accept the lowball offer and move on.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Big win for Labour and deal on Europe could produce UK rebound
Will AI ever live up to its hype?
Vibrancy of Singapore Exchange should be everyone’s concern
From Lego to McKinsey, distracted managing can kill companies
South Korea summit comes at key moment in global AI debate
Stock market needs shot in the arm, but not via CPF investments