‘Selective Capital Reduction as a Delisting Method’ – This update discusses the recent delisting exercise undertaken by Best World International Limited by way of a selective capital reduction, and elaborates briefly on selective capital reduction as a delisting and squeeze-out method.
Selective Capital Reduction as a Delisting Method
In recent times, parent companies have been contemplating privatisation options due to subdued valuations in the market. This shift seems to have prompted exploration of alternative strategies in response to prevailing market conditions, perhaps as a means to unlock latent value within the companies and/or to allow for greater flexibility and control.
This legal note offers an overview of various delisting options that could be viable strategies for companies contemplating privatisation.
Privatisation of Companies and Delisting Options