There's two rather interesting or revealing passages from the following article on the Edge :Ananda could see RM4b gain from Tanjong buyout
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If the touted price tags for the power and gaming assets are true, Ananda would in less than two years managed to sell two of Tanjong’s prized assets for about RM12.85 billion — over RM4 billion or some 46% more money than the RM8.8 billion Tanjong valued using the RM21.80 per share minorities were bought-out for in July 2010.
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Secondly, Ananda’s investment cost is a lot less than the RM8.8 billion Tanjong was valued using the takeover price, as parties that offered to privatise Tanjong already had 49.96% of the group in hand .......
It was a fantastic payday.
Yeah... but ... have they even wondered if it was even a fair price?
Anyway.... now... apparently someone's going to have a even more fantastic payday!
Yeah... privatisation.... it's such a wonderful business.
But for who?
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2 comments:
The premium that is offered above the market price is so often described as a good exit opportunity for the shareholders. It might be a boon for the gamblers/speculators who are stuck with the stock. But hello, may I ask the commentators how an offer price that is far from the intrinsic value of the business considered a good exit opportunity for the loyals who have been in the company for the long haul?!?
Good point!
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