Minor shareholders

[WA Toffee]

If the rumoured takeover goes ahead, what does that mean for those people who own 1 or 2 shares? Do you have to sell them or can you just keep them?
And do you get a say in whether the takeover goes ahead (even though you would be outvoted if you said no anyway)

 

[Donald Twain]

If the rumoured takeover goes ahead, what does that mean for those people who own 1 or 2 shares? Do you have to sell them or can you just keep them?
And do you get a say in whether the takeover goes ahead (even though you would be outvoted if you said no anyway)

Meet the new boss , same as the old boss!

 

[Groucho]

This may be one for @The Esk

 

[Tramps_mate]

If someone owns a certain percentage I'm sure they can force minority holders to sell up. Can't remember the ins and outs though.

But all the people with 1 or 2 shares will lose them I think.

 

[Harry Catterick]

I think it depends on the percentage purchased by the new majority shareholder. I think if they buy 75% they have to offer the same price per share to the small shareholders but they can't force them to sell. Once they own 90/95% they can then force the small shareholders to sell at the same price. I think that was what happened when Hicks and Gillette bought Liverpool. Don't think Liverpool now have any small shareholders.

 

[The Esk]

If the rumoured takeover goes ahead, what does that mean for those people who own 1 or 2 shares? Do you have to sell them or can you just keep them?
And do you get a say in whether the takeover goes ahead (even though you would be outvoted if you said no anyway)

If they have the agreement of 75% of shareholders they can apply to the High Court to acquire all shares (called a scheme of arrangement).

Above 90% they can compulsory purchase the rest of the shares without court approval.

 

[Harry Catterick]

The takeover is announced officially. The ex Arsenal guy is acquiring 49.9% of the shares. That is effectively majority control as many small shareholders effectively can't be traced so getting together a 50.10% group to oppose would be impossible. I would guess he's buying Earl's shares and a proportion of those owned by BK and Jon Woods

 

[Alanbileysfeathercut]

Yes