Dear readers, as you would have now known, Keppel Corporation is acquiring Singapore Press Holdings (SPH) and then privatising Singapore Press Holdings (SPH). When I read the news, I was surprised, disappointed and realistic.
Surprised that Keppel Corporation will be buying over SPH’s non-media business. While it is good that Keppel Corporation can increase its assets e.g properties from SPH Reit, I was thinking perhaps it will be better for Keppel Corporation to be more targeted in terms of acquisition. Do not get me wrong, I understand Keppel Corporation has already been working towards areas that it is intending to focus on for future growth like Smart Cities, Sustainability and disposing off its offshore marine subsidiary. But I would have expected Keppel Corporation to acquire something more related to the clear industrial drivers for the future like Smart Cities, Urban Sustainability, especially since it is not often Keppel Corporation makes an acquisition.
Disappointed that another signature Singapore symbol in SPH will be privatised, similar to NOL. In the past, such “blue-chip” companies enjoy strong growth with the rapid urbanisation and industrialisation of Singapore. But now with Singapore’s economy already becoming mature and competition internally getting stronger and volatile, it is a fact that our Singapore’s blue-chip stocks cannot grow that easily against the aforementioned backdrop without a good business strategy.
Realistic. Realistic that Singapore’s market is small. For listed local companies to continue to grow, they would have to look for overseas markets but therein lie competition and more risks.
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