Privatisation offers: address the issue of independence 

IN RECENT months, retail investors have been presented with several takeover-cum-privatisation offers by major shareholders. In all cases, there have been expressions of outrage amidst accusations of exploitation, with offer prices described as “lowball” – certainly from the standpoint of minorities who would want prices to be as high as possible.

By the same token, “lowball” offers are understandable as no offeror would want to pay full value if they can avoid it.

Regulators meanwhile are reluctant to intervene – again, understandably, given that the privatisation process calls for an independent financial adviser (IFA) to render an opinion on whether the offer is “fair and reasonable”.