Privatization plays

CIMB looks at potential privatization plays and tips STI at 3340, with an Overweight rating on Singapore. Note that a flurry of privatisation has gripped SG market of late with the Asian consumer franchises that started the corporate actions. Next, bombed-out cyclical coal stocks went the route of privatisation as well. Stocks have generally ended up more than 20% higher on such buyouts. House note stocks that might receive privatisation offers include Chemoil, CH Offshore, Hiap Seng, KS Energy, Mermaid Maritime, Otto Marine, STX OSV, Yangzijiang, Bukit Sembawang, Ho Bee, Pan Pacific, Singapore Land, Great Eastern, M1, Armstrong and Biosensors and recommends positioning for these stocks, if one wants to bet on privatisation gains.