Here are five listed companies that are likely to go private soon

Watch out for takeover offers.

More firms might opt to get de-listed in the near future, as major investors seek to take advantage of low valuations and attractive market positions, according to analysts from RHB Research.

RHB’s report highlighted five companies which might get privatised in coming quarters, Potential de-listing candidates include UOB Kay Hian, the brokerage arm of UOB Group and the only listed brokerage company on the SGX.

“Bringing it within the bank’s fold would enable the enlarged group to cross-sell a broader suite of wealth management services to its clients,” RHB said.

Another potential privatisation candidate is United Industrial Corporation (UIC), which is majority owned by UOL Group.

“[UOL] currently owns 44% of UIC, while Haw Par owns another 5%. Both Haw Par and UOL share a common shareholder in banking magnate Wee ChoYaw,” RHB said.

Wheelock Properties Singapore is another likely candidate, as its parent company might choose to take it private in order to use its excess cash to support its China expansion.

Transport operator SMRT might also get de-listed, on back of impending changes in the public transport financing framework. 

“Bringing SMRT into private hands, ie Temasek Holdings, could facilitate the restructuring efforts and overcome commercial considerations as a listed enterprise,” RHB noted.
Lastly, NeraTel is also a potential privatisation candidate, with private equity funds likely looking for an exit given the long holding period.

“PGA Partners has held NeraTel for more than three years and may now look for buyer to take over this business. Rule 14 of the Singapore Take-over Code provides that a mandatory offer is triggered when an offerer acquires 30% or more of shares carrying voting rights of the target company. Hence, if PGA were to sell out their stakes, rest of the public shareholders will also benefit from a mandatory general offer,” the report noted.