Weak market sentiments may spur more privatisation deals: industry players

THE recent privatisation offer for Frasers Hospitality Trust (FHT) is the latest in a long string of offers that have taken place in the local market as weakened investor sentiment creates value for founders and private equity groups.

Bankers told The Business Times that such mergers and acquisitions (M&A) activity can be expected to continue, especially as companies and funds seek to deploy capital.

“Privatisations have been the main M&A trend over the last couple of years in Singapore," said UOB head of group investment banking Edmund Leong. "With the current volatility and weak market sentiment, there is perceived under-valuation of companies, which has led to a number of listed companies exploring the privatisation option."