Why it matters: A host of privatisation bids, private equity buyouts and de-listings from the ASX have been happening after a tumultuous period.
Wilson Asset Management portfolio manager Oscar Oberg says shrinking liquidity in daily trading of shares is something investors should watch for.
Shareholders in Pact Group and retailer Best & Less missed out on premiums, with Rich Listers already controlling large stakes.
The torrent of privatisation offers, private equity bids and delistings from the ASX are set to gather pace, says one fund manager, with companies with low levels of liquidity in their shares among the prime candidates.
Some of the bids, such as Rich Lister Raphael Geminder’s bid to buy out the remaining 50 per cent of struggling packaging company Pact Group, offered only a tiny premium. But investors should be on high alert for other unloved companies such as health group Healthia.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
