Scholar Paper
An Analysis of Why Public Listed
Companies Go Private in Malaysia
Lau Chee Chin @ Lau Cheung Chang
Bachelor of Commerce
Flinders University of South Australia
1998
Submitted to the Graduate School of Business
Faculty of Business and Accountancy
University of Malaya, in partial fulfillment of the requirements for the Degree of
Master of Business Administration
June 2009
AN ANALYSIS OF WHY PUBLIC LISTED
COMPANIES GO PRIVATE IN MALAYSIA
LAU CHEE CHIN @ LAU CHEUNG CHANG
Dedicated to my esteemed
Father & Mother for showing me that life is a process and not an event
Also dedicated to my Wife for been a constant source of inspiration, mentor and a guide to me.
ACKNOWLEDGEMENTS
First and foremost, I am dearly indebted to my supervisor Prof Madya Dr. M Fazilah
Abdul Samad who has been very supportive throughout my research studies. Her keen mind, abilities and expert guidance put me on the right track and enabled me to complete this research. I would like to thank her for the support, encouragement and patience. My eternal gratitude is to my parents who raised me, taught me, and endlessly encouraged me to see life as a process and not as an event. I am also indebted to my wife for her enormous support, patience, encouragement and the sharing of the burden throughout my MBA programme.
I would like to express my gratitude to my fellow lecturers, the ever helpful administrative personnel and fellow MBA students at the Graduate School of
Business at University Malaya. Finally, I must express my sincere appreciation to all those who helped me and those who stood with me during the period of my MBA programme. LAU CHEE CHIN @ LAU CHEUNG CHANG
MARCH 2009
ABSTRACT
The trends of public listed companies going private in Malaysia‟s stock exchange Bursa Malaysia has experienced a surge with 17 public listed companies being taken private in the first half of the year in 2007 together with approximately RM46.29 billion
Companies Go Private in Malaysia
Lau Chee Chin @ Lau Cheung Chang
Bachelor of Commerce
Flinders University of South Australia
1998
Submitted to the Graduate School of Business
Faculty of Business and Accountancy
University of Malaya, in partial fulfillment of the requirements for the Degree of
Master of Business Administration
June 2009
AN ANALYSIS OF WHY PUBLIC LISTED
COMPANIES GO PRIVATE IN MALAYSIA
LAU CHEE CHIN @ LAU CHEUNG CHANG
Dedicated to my esteemed
Father & Mother for showing me that life is a process and not an event
Also dedicated to my Wife for been a constant source of inspiration, mentor and a guide to me.
ACKNOWLEDGEMENTS
First and foremost, I am dearly indebted to my supervisor Prof Madya Dr. M Fazilah
Abdul Samad who has been very supportive throughout my research studies. Her keen mind, abilities and expert guidance put me on the right track and enabled me to complete this research. I would like to thank her for the support, encouragement and patience. My eternal gratitude is to my parents who raised me, taught me, and endlessly encouraged me to see life as a process and not as an event. I am also indebted to my wife for her enormous support, patience, encouragement and the sharing of the burden throughout my MBA programme.
I would like to express my gratitude to my fellow lecturers, the ever helpful administrative personnel and fellow MBA students at the Graduate School of
Business at University Malaya. Finally, I must express my sincere appreciation to all those who helped me and those who stood with me during the period of my MBA programme. LAU CHEE CHIN @ LAU CHEUNG CHANG
MARCH 2009
ABSTRACT
The trends of public listed companies going private in Malaysia‟s stock exchange Bursa Malaysia has experienced a surge with 17 public listed companies being taken private in the first half of the year in 2007 together with approximately RM46.29 billion
References: Lehn, K and A. poulsen, 1989 “Free Cash Flow and Stockholder Gains in Going Private Transactions” Journal of Finance 44 Private Transactions” The Journal of Finance No.3 July 1989 Pagano Marco, Fabio Panetta and Luigi Zingales, 1998: “Why Do Companies and Takeovers” The American Economic Review DeAngelo H, 1984 “Going private: minority freezeouts and stockholder wealth”