Singapore is witnessing a notable increase in privatisation offers in 2025, with 15 companies receiving offers year-to-date compared to 18 in 2024. This trend is largely driven by attractive valuations, minimal funding needs, and new partnerships, prompting major shareholders to take their companies private from the Singapore Exchange (SGX).
A recent screening by UOB Kay Hian identified companies with high net cash as a percentage of market capitalisation as potential privatisation targets. Among these, China Sunsine and Valuetronics stand out due to their attractive valuations and high dividend yields. China Sunsine, a global leader in rubber accelerators, trades at 1.7x 2025 forecast ex-cash price-to-earnings (PE) ratio and offers a 5.3% dividend yield. Valuetronics, meanwhile, trades at 3.5x 2025 forecast ex-cash PE and offers a 6.3% dividend yield.
Other notable companies include Avarga, with net cash forming 75% of its market cap, and Samudera Shipping, with 71%. Both companies are trading at significant discounts to their book values, making them appealing to investors.
The Monetary Authority of Singapore’s S$5b Equity Market Development Programme is expected to improve market liquidity, potentially leading to further re-ratings of these deep value stocks. As privatisation offers remain elevated, companies with substantial cash reserves and dividend yields are well-positioned to weather economic downturns and attract investor interest.
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