GuocoLand’s case for privatising Bursa-listed GuocoLand (Malaysia) not strong
But the proposed move could be SGX-listed GuocoLand’s way of priming itself to be privatised in future
ON TUESDAY night (Feb 3), GuocoLand announced it planned to take its Malaysia-listed unit private at an offer price of RM1.10 a share, for the almost-35 per cent stake it does not already own.
For minority shareholders of Bursa-listed GuocoLand (Malaysia) or GLM, the rationale to accept the proposal by GuocoLand’s wholly-owned subsidiary GLL (Malaysia) to take it private is sound.
Trading liquidity of GLM shares is low. Minority shareholders of GLM get to realise their holdings at a premium of 17.7 per cent to the last-traded price on Jan 30, and 47.7 per cent to the six-month volume weighted average market price up to Jan 30.
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