Shares of SC Global Developments Ltd surged as
much as 49.8 percent after it said its chairman and chief
executive officer planned to privatise the property developer in
a deal worth about S$745 million.
By 0144 GMT, SC Global shares were up 49.4 percent at
S$1.80, having surged 82 percent since the start of the year.
Its second largest shareholder, Wheelock Properties (Singapore)
, also rose 3.4 percent on expectations it would make a
large gain from selling its stake to the CEO and largest
shareholder Simon Cheong.
Cheong, who owns a 55 percent stake in SC Global, offered to
buy all the shares he does not own at S$1.80 each, a 49.4
percent premium to the last traded price on Nov 30.
UOB Kay Hian said Cheong's offer price was at a 13 percent
discount to its restated net asset value estimate, but "the weak
luxury market, possible negative impact from extension charges
and government policy overhang will make it difficult to realise
its full value."
The privatisation makes sense due to the low trading
liquidity of SC Global's shares and its minimal needs to access
capital markets, UOB said.
0950 (0150 GMT)