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Acquiring a private limited company

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Acquiring a private limited company

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • January 28, 2021 at 10:29 am #608335
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir do you think shareholders of a company who are already holding a diversified portfolio, will benefit at all if their company acquire’s an UNLISTED company?

    I feel how much ever diversified they might be, if their company invests in a company in which they themselves have no access(like Private companies) to then they should have some personal benefit too.

    January 28, 2021 at 4:53 pm #608372
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54738
    • ☆☆☆☆☆

    I don’t know what you are meaning, because if their company acquires a company that is currently unlisted then their company will still be entitled to receive the earnings of that company. Why do you say that they have no access? The unlisted company will no longer exist once it has been acquired.

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