26-02-2014, 02:31 PM
(26-02-2014, 11:35 AM)kagemusha Wrote: I guess, its not in investors advantage for a public listed company to de-list.
Although we can say there is no change from investment point of view, but from a transparency point of view, investors do not have visibility of how company performs by quarter.
I would like to explore the advantages and disadvantages of accepting an exit offer rather than going private.
Any buddies got any views on this, just from a private vs public pov.
I think once delisted, they cannot have more than 50 shareholders ( individual ) though corporations can be a shareholder. There is also a difference between 'shareholder' and 'member' of a pte ltd company.. which it becomes once delisted.
Unless you are a shareholder with substantial holdings, you are stuck. Cannot sell shares, unless the company offers you again ( after delisting ). My opinion is that if a company wants to delist, I have no choice but to sell in market or accept their offer, whichever is a better gain.
If you choose not to accept or sell in the market, you may end up with worthless paper. They can ignore you and not inform you of meetings or not reveal profit or loss. You may not have tittle to dividends either.