Property plays tipped as candidates to be taken private are rallying after peer SC Global’s (D2S.SG) CEO launched a $1.80/share bid for the 44.9% of the company he doesn’t already own.
UOB KayHian tips Wheelock Properties (M35.SG) and Ho Bee (H13.SG) as “highly likely” candidates to be taken private. It notes Wheelock Properties, 76%-owned by unlisted parent Wheelock & Co, was trading at a 27% discount to book value at Wednesday’s close, with the parent privatised in 2010 at a huge 144% premium to its last traded price.
Ho Bee, about 70% family-owned, was at a 28% book-value discount at Wednesday’s close, it notes; despite management denying privatisation plans, recent share buybacks signal deep value, UOB-KH says.
Guoco Group’s (0053.HK) recent privatisation talks have spurred interest in its 65%-owned GuocoLand (F17.SG), but a privatisation is less likely as it trades at an 18% RNAV discount, it says.
It tips other likely candidates as GuocoLeisure (B16.SG), Hiap Hoe (5JK.SG) and Sim Lian (S05.SG).
Wheelock is up 3.1% at $1.97, Ho Bee is up 4.7% at $1.785, GuocoLand is flat at $2.42, GuocoLeisure is up 1.6% at $0.625 and Hiap Hoe is up 2.5% at $0.625, but Sim Lian is down 0.7% at $0.735 in slim volume.
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