Singapore’s stock market has seen multiple companies being taken private in recent years. Some of the major companies that have been privatized include:
- Cerebos Pacific
- Asia Pacific Breweries
- Keppel Land
- CapitaMalls Asia
- Neptune Orient Lines
- Tiger Airways Holdings
- OSIM International
The wave of privatisation may not be over just yet. In the next few months, here are some of the listed companies which investors might have to bid farewell to:
1. Eu Yan Sang International (SGX: E02)
Eu Yan Sang is near the final leg of its voluntary conditional cash offer.
According to its latest update, the company’s offer will end today at 5:30 pm. So, we would know soon if the voluntary conditional cash offer for the 140 year-old company would be successful.
If the deal goes through, Eu Yan Sang’s 16 year stint in Singapore’s stock market would come to an end.
The company has been struggling with its business over the past few years; Eu Yan Sang’s profit has fallen from a positive S$25.3 million in the fiscal year ended 30 June 2011 (fiscal 2011) to a negative S$13.5 million in fiscal 2016.
2. SMRT Corporation Ltd (SGX: S53)
The majority shareholder of SMRT is Temasek Holdings, one of the Singapore government’s investment arms.
Back in July, Temseak revealed that it wants to take SMRT private. Interestingly, the privatisation offer came very shortly after SMRT had proposed a sale of its rail business’s operating assets to Singapore’s government under the authorities’ new rail financing framework (NRFF).
Instead of going through a usual voluntary offer, Temasek will be using a Scheme of Arrangement. The meeting for SMRT’s shareholders to vote on the takeover will be taking place soon on 29 September.
According to the documents distributed by SMRT, two conditions need to be fulfilled for the Scheme of Arrangement to go through: (1) 50% of SMRT’s shareholders, other than Temasek, need to be present or have a proxy at the meeting; (2) More than 75% of SMRT’s shares, other than those held by Temasek, need to approve the takeover.
The two companies mentioned above are involved with very different privatisation deals. We would soon know if either of them would become private companies.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.