Taking a subsidiary private?

English Boards Suggestions and Ideas
1

Just wondering if we could introduce the option of taking an airline off the market into a wholly owned subsidiary when, for example, the parent company acquires all shares of the airline?

2

This is well discussed, but the IPO shouldn't just be there to gain quickly money. It shall be a strategic decission with consequences.

3

This is well discussed, but the IPO shouldn’t just be there to gain quickly money. It shall be a strategic decission with consequences.

Well, yes, but it would be nice if you could offer everyone a (minimum) 100% premium to how much money you got from the IPO that would require 75%+ of other people’s shares voting yes. Since taking yourself private is usually expensive, this seems fair…no?

4

Well, yes, but it would be nice if you could offer everyone a (minimum) 100% premium to how much money you got from the IPO that would require 75%+ of other people's shares voting yes. Since taking yourself private is usually expensive, this seems fair...no?

I don't really understand what your suggestion is?

And BTW I was thinking more like....you cannot take the company off the market until it has been on the market for one year - that way I don't think a lot of people would want to waste a year of time just to "gain quick money" on a sub?

5

I don't really understand what your suggestion is?

 

And BTW I was thinking more like…you cannot take the company off the market until it has been on the market for one year - that way I don’t think a lot of people would want to waste a year of time just to “gain quick money” on a sub?

In money terms.

My company is currently valued at $200/share at today’s close. I can press a button that offers each shareholder an equal amount of $400/share or more. They reply, like an, IL (accept) or (reject) - if 75% of your shareholders (excluding you) vote yes: everybody gets paid and bought out. So if only 25% of your shares are held by others, 19% of your free float shares must vote yes.

Sort of like it works in the real world, you don’t need 100% of shares to force a company to go private.