Dear readers, today let me surface the names of three Singapore stocks which could be privatised going ahead.
It was announced yesterday that the operations at Singapore Changi Airport Terminal 4 would be suspended. The suspension followed that of the suspension of operations at Changi Airport Terminal 2. The suspension of operation at two services so as to consolidate airport operations in Terminal 1 and Terminal 3 seems inevitable given the current challenges that Singapore Airlines (SIA) is facing.
While SIA is currently implementing some measures to help tide over this challenging period for the Group like issuing rights, I am of the view that the aviation industry post-Covid-19 will become even more challenging. The fear is that nobody knows when the aviation industry will recover to normalcy and whether in the first place the industry would recover to the levels before Covid-19. And whether airlines bodies could survive the current Covid-19 challenges.
Given the likely challenges for the aviation industry going forward, I am of the view that SIA will become privatised in time to come. I mean there are advantages of privatisation such as reduction of the costs of being a listed entity and more control of the finances of the company (rather than subject to the vagaries of the stock markets). I also think that SIA Engineering, a subsidiary of SIA could also be a possible privatisation target.
The third privatisation candidate will likely be Sembcorp Marine stock which I have shared several times on SG Stocks Investing. I continue to hold the view that there is scope, opportunities and benefits to consolidate the offshore energy and marine sector here in Singapore.
And here it is, my take of three privatisation candidates of Singapore stocks. This post is not to encourage investors to invest in any of the three above stocks for potential privatisation gain or whatsoever. It is just my sharing of my views of the Singapore stocks. Always do your own due diligence when it comes to investing.
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