Why are companies delisting from SGX?

[specuvestor]

Does that means that once they de-list, you are pretty much screwed unless you have substantial holdings?
Even if the offer is not that attractive?

well, there are successful delisting cases - Want Want, CK Tang and Target Realty.

A lot more screwup cases - if not screwups, they wont get delisted....hahahah...

I think there is a difference between the 90% privatisation route, 75% delisting and SGX compulsory delisting

[arriyana]

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.

It is rarely good to vested with a company that is delisted. You become a minority shareholder, the controlling shareholder generally becomes the super majority leaving you no support from other shareholders. They need not call for dividends (there are other ways of extracting cash/assets out of a company). The accounts are not as seriously audited for private companies. And lastly your shares are so illiquid that you might take a 50% discount just to exit. It's just a bad idea to stay unless you know the controlling shareholder well enough to act in your interest.

[LionFlyer]

Does that means that once they de-list, you are pretty much screwed unless you have substantial holdings?
Even if the offer is not that attractive?

well, there are successful delisting cases - Want Want, CK Tang and Target Realty.

A lot more screwup cases - if not screwups, they wont get delisted....hahahah...

I have a question. If cost is a reason why companies delist, then why are there still some crappy companies that are barely or not even making money who insist on remaining listed? (primarily the pennies that make up the top volumes)

[safetyfirst]

because they cant find good reasons to explain why to delist... so use generic reasons like cutting cost lor

it is very much like some people claim the minimum wage cannot be implemented ... and the generic reason is we will be less competitive

[CY09]

Does that means that once they de-list, you are pretty much screwed unless you have substantial holdings?
Even if the offer is not that attractive?

well, there are successful delisting cases - Want Want, CK Tang and Target Realty.

A lot more screwup cases - if not screwups, they wont get delisted....hahahah...

I have a question. If cost is a reason why companies delist, then why are there still some crappy companies that are barely or not even making money who insist on remaining listed? (primarily the pennies that make up the top volumes)

So that they can raise money whenever they need money from foolish shareholders. Or 2) some of them stay listed to make financial institutions think they are reputable and loan them even more money

[sgd]

empty loss making listed company is still a listed vehicle, ever heard of RTO reverse takeover that's another reason. A lot of business cannot make the grade to enter thru front door so go by backdoor. Shell company usually is in deep trouble not only unprofitable but also leveraged or negative capital so waiting for white knight rescue.

[arriyana]

when you voluntarily delist, the controlling shareholder must buy over the shares from the public. Essentially its taking private wealth to enrich external shareholders to delist the company.

If the controlling shareholder has no plans or no way to turn the company around, why would he throw more money to take it private? Usually when companies are taken private, they try to restructure and become profitable again. Unfortunately it doesn't happen much in Singapore's context.