During the so call "Recession" period, some of the listed companies have chosen to privatize instead of remain listed in the stock exchange.
According to my experience, most companies will offer price above their book value, minority will offer price below their book value, however almost all would offer more than 10% above their current trading market price.
So as a minority shareholder, what should we do?
My personal opinion is to accept the offer. In most situation, once the listed company has acquired above 90% of their shares, it would turn from conditional offer to unconditional offer, so by the time it turned into unconditional offer, what can a minority shareholder do if the company turned into a private company?
My personal answer is NOTHING! Just imagine you are the minority shareholder of a private limited company, what can you do?
Therefore personal suggestion will be accept the offer and move on to invest in other great companies.
Have you ever been the minority shareholders of a listed companies? What did you do when the listed company goes private? What experience did you learn out from it? Do share my post and comments if you have any other suggestion or would like to share your personal experiences.
No comments:
Post a Comment