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Privatisation of SIAEC is more a possibility than probability
Parent SIA may well have its hands full combating headwinds on multiple fronts than worry about full ownership
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Nisha Ramchandani
Published Tue, Jul 9, 2019 · 09:50 PM
SPECULATION last week of a potential privatisation bid by Singapore Airlines (SIA) has sent SIA Engineering Company's (SIAEC) share price surging.
Fuelled by the rumours, the counter rose to an intraday high of S$2.96 last Friday but eased to close at S$2.75 on Tuesday.
Analysts seem to agree that there are enough reasons to delist SIAEC, given its cash-rich position and little need to tap the equity capital markets for financing, well as its low trading liquidity and free float. In addition, SIA already owns a near 78 per cent stake in the maintenance, repair and overhaul (MRO) player.
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