What Happens When A Publicly Listed Company Gets Privatised?
Privatisation happens when a publicly-listed company receives a buyout offer from a private company. Some companies that have been privatised in recent years include: SMRT, Keppel Land, Neptune Orient Lines (NOL), OSIM International and more. Why Privatisation Happens There are many reasons why a company gets privatised. The company is undervalued: Being undervalued is one of the reasons a private stakeholder such as a private-equity firm offers to privatise the company. Another result of a company being undervalued could be the company choosing to list in another country’s stock exchange instead. The company is undergoing some restructuring or reorganisation: Companies privatised due to corporate restructuring or a shift in the company’s interest. Strategic reasons: Changes in the c