Sizing up the latest privatisation offers

The offers for Sin Ghee Huat and Top Global seem to undervalue both companies, but minorities of the former have more reason to hold out

Ben Paul

Published Mon, May 3, 2021 · 05:50 AM

top global

THE seemingly unending Groundhog Day of lowball privatisation offers for locally listed companies continued this past week - with the latest candi-dates being stainless steel products distributor Sin Ghee Huat and real estate player Top Global.

Like most such transactions, these latest offers are from the respective major shareholders of the two companies. The presented rationale for both deals is that minority investors will be able to cash out at prices that are higher than the recent market prices of the two stocks, sans brokerage charges.

Yet, the offers are anything but generous. Both are plainly opportunistic, coming after a period of poor performance by the companies and just as the post…