Shares of SC Global Developments surged as much as 49.8% after it said its chairman and chief executive officer planned to privatise the property developer in a deal worth about $745 million.
By 9:44 a.m., SC Global shares were up 49.4% at $1.80, having surged 82% since the start of the year.
Its second largest shareholder, Wheelock Properties (Singapore) , also rose 3.4% on expectations it would make a large gain from selling its stake to the CEO and largest shareholder Simon Cheong.
Cheong, who owns a 55% stake in SC Global, offered to buy all the shares he does not own at $1.80 each, a 49.4% premium to the last traded price on Nov 30.
UOB Kay Hian said Cheong’s offer price was at a 13% discount to its restated net asset value estimate, but “the weak luxury market, possible negative impact from extension charges and government policy overhang will make it difficult to realise its full value.”
The privatisation makes sense due to the low trading liquidity of SC Global’s shares and its minimal needs to access capital markets, UOB said.
No comments:
Post a Comment