Will low valuations lead to more privatisation?


In the spotlight: People walk past the bull and bear statue at Bursa headquarters. Cheaper valuations on Bursa have helped fuel speculation of possible buyouts of asset-rich companies trading at low prices.

TALK in the market is that the bearish market conditions could lead to more privatisations or buyouts of public listed companies.

This is premised largely on the fact that many listed companies are trading at gaping discounts to their underlying values, reflected by ratios such as their net tangible assets. (See table)

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