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What investors need to know about privatisation offers to buy out shares
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An inefficient market and weak conditions have prompted many majority shareholders of affected firms to buy up the shares and take companies private.
PHOTO: ST FILE
David Gerald
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When it comes to stock investments, the conventional wisdom is that companies list via an initial public offer (IPO) to raise capital from the public.
After that, they use that capital to grow their businesses and reward their shareholders with dividends. As markets are efficient and able to correctly discount future prospects based on all available current information, investors benefit from rising share prices.
