Excerpts from OSK-DMG report 

priv_osk7.13


OSK-DMG suggests possible privatisation plays in property counters

One sector which has seen a flurry of privatisation activities is the property sector as valuations fell to depressed levels.

Our small cap specialist Goh Han Peng observes that the earlier deals were backed by cash-rich parents which owned a significant chunk of the stock at the point of privatisation.

Last year, Wing Tai's major shareholder Cheung Wai Keong made a partial offer to raise his family’s stake from 42% to over 50%.

DaysHotel_taxiGuests arriving at Hiap Hoe's new Days Hotel in Balestier. NextInsight file photoTowards the end of the year, Simon Cheong offered to delist SC Global at a 49% premium to the last traded price. In the 1st half of the year, we witnessed two privatisations, Guthrie GTS and Pan Pacific Hotels Group. 

Hiap Hoe - Flagship property is the integrated development at Balestier, comprising two hotels with 800 rooms, retail and office space.

Hiap Hoe owns 50% of the $700m development and in addition, has a lucrative property development business. Our RNAV for the stock is SGD1.32 and the stock trades at 50% discount of RNAV.  



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