Technical Mandatory offer

Kithsiri · 1 Technical Mandatory offer Sat Aug 27, 2011 1:13 pm

Kithsiri

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If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

Fresher · 2 Re: Technical Mandatory offer Sat Aug 27, 2011 1:41 pm

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@Kithsiri wrote:If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

no.

if so who will take the responsibility of buying anyway? Very Happy

dewminigamlath · 3 Re: Technical Mandatory offer Sat Aug 27, 2011 3:08 pm

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@Kithsiri wrote:If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

That's not possible. However, since you mention public acting as one group, then there is a possibility of forming a company by that group, and that company can give a mandatory offer. It need not be a quoted company.

Kithsiri · 4 Re: Technical Mandatory offer Sat Aug 27, 2011 6:28 pm

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@dewminigamlath wrote:

@Kithsiri wrote:If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

That's not possible. However, since you mention public acting as one group, then there is a possibility of forming a company by that group, and that company can give a mandatory offer. It need not be a quoted company.

A few days back, there was a talk of forming a small investors' union (pact or whatever).
I was thinking how that idea would fit into this trajectory?
Thanks again Guy (Gals too if any)!

Fresher · 5 Re: Technical Mandatory offer Sat Aug 27, 2011 6:57 pm

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@Kithsiri wrote:

@dewminigamlath wrote:

@Kithsiri wrote:If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

That's not possible. However, since you mention public acting as one group, then there is a possibility of forming a company by that group, and that company can give a mandatory offer. It need not be a quoted company.

A few days back, there was a talk of forming a small investors' union (pact or whatever).
I was thinking how that idea would fit into this trajectory?
Thanks again Guy (Gals too if any)!

in short, when an individual or a related company or a company acquires 30%, it means that it has got fair control of the company. Therefore a mandatory offer is made to other shareholders where if they do not wish to be shareholders can accept.

therefore if someone acquires 30% they must be prepared and have enough money to purchase the balance 70%.

In the case, if the proposed 'small investors' union' buys 30%, how will they finance the balance 70% regardless of whether the offer will be accepted or not?

dewminigamlath · 6 Re: Technical Mandatory offer Sat Aug 27, 2011 7:14 pm

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npp wrote:
in short, when an individual or a related company or a company acquires 30%, it means that it has got fair control of the company. Therefore a mandatory offer is made to other shareholders where if they do not wish to be shareholders can accept.

therefore if someone acquires 30% they must be prepared and have enough money to purchase the balance 70%.

In the case, if the proposed 'small investors' union' buys 30%, how will they finance the balance 70% regardless of whether the offer will be accepted or not?

Interesting and perfectly valid point. Food for thought, may be...!

Kithsiri · 7 Re: Technical Mandatory offer Sat Aug 27, 2011 7:47 pm

Kithsiri

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npp wrote:

@Kithsiri wrote:

@dewminigamlath wrote:

@Kithsiri wrote:If 30 % or more shares in public hands of any company can the public (share holders as one group) technically give a Mandatory offer?
Enlighten me please.

That's not possible. However, since you mention public acting as one group, then there is a possibility of forming a company by that group, and that company can give a mandatory offer. It need not be a quoted company.

A few days back, there was a talk of forming a small investors' union (pact or whatever).
I was thinking how that idea would fit into this trajectory?
Thanks again Guy (Gals too if any)!

in short, when an individual or a related company or a company acquires 30%, it means that it has got fair control of the company. Therefore a mandatory offer is made to other shareholders where if they do not wish to be shareholders can accept.
therefore if someone acquires 30% they must be prepared and have enough money to purchase the balance 70%.
In the case, if the proposed 'small investors' union' buys 30%, how will they finance the balance 70% regardless of whether the offer will be accepted or not?

Nothing is impossible if you put your Ms in to it!
Food for thought as correctly put by Mr. Gamalath.

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Technical Mandatory offer

1 Technical Mandatory offer Sat Aug 27, 2011 1:13 pm

Kithsiri

2 Re: Technical Mandatory offer Sat Aug 27, 2011 1:41 pm

Fresher

3 Re: Technical Mandatory offer Sat Aug 27, 2011 3:08 pm

dewminigamlath

4 Re: Technical Mandatory offer Sat Aug 27, 2011 6:28 pm

Kithsiri

5 Re: Technical Mandatory offer Sat Aug 27, 2011 6:57 pm

Fresher

6 Re: Technical Mandatory offer Sat Aug 27, 2011 7:14 pm

dewminigamlath

7 Re: Technical Mandatory offer Sat Aug 27, 2011 7:47 pm

Kithsiri

8 Re: Technical Mandatory offer

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