Here's what will propel the privatisation wave in Singapore this year

The first quarter isn’t over, and five firms already received takeover offers.

The wave of merger & acquisition and privatisation deals has gained momentum last year and is expected to continue this year, a report from DBS said.

Some of the factors propelling this trend are cheap valuations, low liquidity, dominant shareholder control, strong asset backing, and strong brand premiums, as private-equity funds scout for undervalued gems whilst rich shareholders and owners put up offers to privatise companies.

"Despite the Straits Times Index’s recent outperformance, valuation remains inexpensive versus regional peers. This, coupled with green shoots of recovery, has revived interest in Singapore equities, adding fuel to the M&A momentum," DBS noted.

Since 2013, more than 20 companies are taken private or bought out. Two months into 2017, there are reported buyout offers for five companies, offering premiums of between 2% and 21% over their last transaction price.

Check the table below to see the privatisation deals announced this year so far:

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