Minorities should do more to reject or pre-empt ‘lowball’ privatisation offers

THERE has been much discussion in recent months about “lowball” privatisation offers tabled by majority shareholders, with the focus on what can be done to improve the position of minorities who are typically seen as being exploited by such deals.

Whilst some sympathy is undoubtedly due, it is equally important to note a simple financial truth – no rational, profit-maximising offeror would pay full value, or for that matter, even close to full value.

More likely, offerors will surely try to extract maximum value by paying as little as possible, while playing within the rules.