Valuations are incredibly low.
Cheap privatisation offers no longer work with minority shareholders in Singapore, according to a report by Reuters. The report noted that managements are increasingly being forced to pay up as minority investors demand bigger premiums due to depressed market valuations.
With almost 300 small- and micro-cap companies currently trading on average at half the valuations of Asia-Pacific, founders of several firms have lined up plans to take the companies private, analysts say.
"People have been able to look at cash-rich listed corporates acquiring and say 'hang on, you can afford to pay more'," said David Smith, head of corporate governance at Aberdeen Asset Management Asia. "You'll probably see more of this.".
Read the full report here.
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