GuocoLand’s rationale for privatising its Malaysian arm not strong
But the proposed move could be the SGX-listed group’s way of priming itself to be privatised in future
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[SINGAPORE] On Tuesday (Feb 3) night, GuocoLand announced that it planned to take its Malaysia-listed unit private at an offer price of RM1.10 a share, for the almost-35 per cent stake it does not already own.
For minority shareholders of Bursa-listed GuocoLand (Malaysia) or GLM, the rationale to accept the proposal by GuocoLand’s wholly owned subsidiary GLL (Malaysia) to take it private is sound.
Trading liquidity of GLM shares is low. Minority shareholders of GLM get to realise their holdings at a premium of 17.7 per cent to the last-traded price on Jan 30, and 47.7 per cent to the six-month volume weighted average market price up to Jan 30.
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