SC Global appears likely to rise once its trading halt is lifted as the luxury-property developer fulfills UOB KayHian’s prediction it was a candidate to be taken private, with a post-market announcement the CEO Simon Cheong offered $1.80/share for the 44.9% of the company he doesn’t already own, valuing it at around $745 million. The stock is halted; it last changed hands at $1.205. It last traded around $1.80 levels in April 2010.
The report notes SC Global trades at 0.77x P/B vs its five-year average of 1.32x, with its NAV at $1.56. The house has a Hold call with $1.13 target. Also on UOB KayHian’s list of potential privatisation plays from its Wednesday note are Wheelock, GuocoLand, GuocoLeisure, Hiap Hoe, Sim Lian and Ho Bee. “The deep trading discounts, low borrowing costs and the government policy overhang in the residential sector may prompt more companies to consider the privatisation route at current juncture.”
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