SC Global shares jump after privatisation plan

Dec 11, 2012 | Comments 0

Singapore luxury residential property developer SC Global Developments Ltd's shares have surged 50 percent in the wake of its chairman and chief executive, Simon Cheong's, plans to delist from SGX.

The stock, which is now trading at S$1.805(US$1.478) has jumped some 82 percent this year, making it 2012′s best performer on the Singapore property index, second only to Wing Tai Holdings Ltd.

Last week, Cheong announced plans to delist SC Global from SGX with a cash offering of S$1.80(US$1.474) per share. The transaction, which is worth about S$745 million(US$610 million) was to be facilitated through Cheong's investment holding company, MYK Holdings Pte Ltd.

SC Global's stocks haven't reached S$1.80(US$1.474) since early 2010. However, this is still about half of its peak in June 2007. Cheong, who established SC Global in 1996 currently has a 55.1 percent stake in the firm, is offering the highest premium for a real estate company in Singapore in the past five years.

In a statement released by SC Global last week, the property developer said that privatisation would remove some bureaucratic and financial burdens, stating that the company's listing "no longer serves a material purpose". The statement also said it has not raised any funds from the capital markets for at least six years.

SC Global is the latest in a string of Singaporean companies riding on the delisting tide. According to Dealogic, there has been a plethora of delistings off SGX this year. The company's portfolio includes The Marq on Paterson Hill, Hilltops, The Ladyhill, The Lincoln Modern, as well as some developments on Seven Palms, Sentosa Cove.

Filed Under: News • Singapore • Uncategorised

Tags: best performer • bureacratic • Cheong • Dealogic • delisting • deslighting SIngapore stock exchange • financial • highest premium • Hilltops • luxury residential property • MYK Holdings Pte Ltd • Peak • real estate • SC Global Developments • Sentosa Cove • Seven Palms • SGX • shares • Singapore property index • The Ladyhill • The Lincoln Modern • the marq on paterson hill • Wing Tai Holdings Ltd

Article source: http://www.thethailandlinks.com/2012/12/11/sc-global-shares-jump-after-privatisation-plan/