Surge in privatisations as share prices remain undervalued
Deal value this year jumps 70% from 2019 as founders, controlling shareholders, managements tie up with PE funds to rescue companies from undervaluation
PERSISTENT undervaluation and the stock market's failure to recover to pre-Covid levels have led this year's privatisations to surpass last year's in deal value by 70 per cent.
Friday's announcement of Hi-P International CEO's offer for the contract manufacturer brings the tally for take-private deals this year to 17, with a combined deal value of about US$5.8 billion, according to Bloomberg data.
This is fewer than the 19 privatisation deals in the whole of 2019, but the deals last year only added up to US$3.4 billion, partly due to a number of very small deals which were less than S$10 million each.
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
Companies & Markets
Frasers Property H1 profit slides 81% on property value losses, lower residential contributions
US bill to restrict WuXi AppTec, Chinese biotechs revised to give more time to cut ties
Barclays cuts jobs in energy transition team it only just built
UMS Holdings Q1 net profit drops 44% to S$9.8 million
SIA Engineering H2 profit rises 11.5% to S$37.8 million on robust aviation MRO demand
Great Eastern shares jump 39% as OCBC mounts S$1.4 billion privatisation bid at S$25.60 per share