In my last 2 blog posts, I've discussed whether investors are short-changing themselves in privatisation deals by giving up long-term gains in return for quick short-term gains. I am a shareholder of CapitaMalls Asia (CMA), which is the subject of a privatisation offer by Capitaland. As you would have guessed, I am not in favour of the privatisation, even though it would have yielded me a gain of 65% (based on the final offer of $2.35). Let us look at the stakes, the cards on hand and the moves Capitaland has made so far.

CMA is the only shopping mall developer, owner and manager listed on the Singapore Exchange. Its business model involves developing and/or procuring shopping malls, managing them and subsequently selling them to the 2 Real Estate Investment Trusts (REITs) under its management. The proceeds from the sale is then recycled to develop and/or procure ...