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QuestionsCategory: Portfolio ManagementPrivatisation of breadtalk
redvolver asked 2 years ago

I feel that this Is a good learning chance for newbie investment like us.
For company going privatisation, what are pros and cons for a shareholder?
Are there any article that we can read on what happen to shareholders and what are their options if a company decide to go private?

redvolver replied 2 years ago

Sorry I mean newbie investors. Typo 😂

redvolver replied 2 years ago

Any advice on this?

1 Answers
Victor Chng answered 2 years ago

Hi Redvolver,
Privatisation does have it pros and it allow you to exit the stock without incurring brokerage fee. As for the cons, it may not be the price that you want or the company is privatise at a undervalued price.
In most case, there is not much option, you either accept or not. If you choose to not accept and when the company privatise, you will own private company shares. This is probably not a favourable situation for you.

redvolver replied 2 years ago

Thanks Victor :)

Victor Chng replied 2 years ago

welcome :)