There is one Singapore stock which in my opinion could still be privatised. This Singapore stocks is a stock which has seen its price dropped to a level not seen since year 2016. And this Singapore stock is none other than Sembcorp Marine stock.
As a quick recap, corporate developments, developments in the price of oil and in part corporate earnings showings have in recent trading sessions drive down Sembcorp Marine stock to $1.34 as at 2 Aug 2019. At this current level, Sembcorp Marine is trading at year 2016 price levels.
But the narrative of a possible privatisation is still relevant for a possible privatisation of Sembcorp Marine stock. If fact, given the current stock price of Sembcorp Marine stock, the case of privatisation is even more compelling.
Let us take a look once again at the drivers of a privatisation scenario for Sembcorp Marine:
Possible increased efficiency for Singapore’s offshore and energy sector through consolidation (namely between Keppel Corporation and Sembcorp Industires)
Sembcorp is focusing on energy business, possible driver to divest its interests in the Offshore and Marine sector
Privatisation is attractive with current price of Sembcorp Marine stock
I would just like to highlight that I have no holdings in Sembcorp Marine stock and will not be considering to buy Sembcorp Marine or other stocks in the near term due to the current macro outlook.
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