Elon Musk’s announcement that he was considering taking Tesla off the stock market should not have been a total surprise. If Musk goes through with his plan he will join a long line of entrepreneurs who have floated their businesses only to become frustrated by the demands of running a public company. Virgin’s Richard Branson, Hugh Hefner of Playboy and Michael Dell of the computer maker have all taken their companies private in the belief that they would fare better out of the glare of the markets. Other well-known brands taken private by founders after a spell as a public company include Iceland, Caffè Nero and Matalan – but Tesla is of a completely different scale and would require Musk raising tens of billions of dollars in funding. The main reasons for taking a company private include: Getting away from the glare of publicity A public company is just that – owned by external investors – mainly through pension and other investment funds that … [Read more...] about From Virgin to Tesla: why companies go cool on public ownership
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The decision by Chairman of Ha Tinh Province People's Committee Vo Kim Cu to use VND1 billion (USD47,610) from the local budget to subsidise a local private nursery school has stirred public ire. Some years ago, Nguyen Du private nursery school in Ha Tinh Town asked for local authority approval to repair and upgrade its infrastructure. The school also asked to borrow VND1.8 billion from the provincial investment and development fund for the work. Nguyen Du private nursery school After giving the permission on the school's proposal, on December 4, 2013, the committee chairman Vo Kim Cu signed a decision to instruct the local Department of Finance to gift USD47,610 for the school. Speaking to Dantri/DTiNews reporter, headmaster of Nguyen Du private nursery school Nguyen Thi Bich Hao repeated that USD47,610 in assistance had been already used up to repair the front roof of the school's building. "When attending the school's ceremony for a new academic year in September 2013, … [Read more...] about Ha Tinh chief wastes public money on private school
Trang Thi Trade & Service Joint Stock Company’s initial public offeringAn auction of the State Capital Investment Corporation’s shares at the Machine and Technology Joint Stock Company ended a vibrant June, with nine initial public offerings and three sessions to sell stakes. 75 percent of total number of companies sold all their shares on offer in June, an increase of 50 percent compared to May and total value of sold shares via the HNX reached more than VND716.5 billion. The HNX saw 21 auctions of 421.9 million shares in the second quarter. Some auctions attracted a large number of investors such as the Bac Giang Water Supply and Sewerage One Member Limited Company’s auction with 268 investors, the Vinacomin-Power Holding Corporation’s auction with 259 investors and the Vinacomin-Minerals Holding Corporation’s auction with 132 investors. Together with close guidelines of the government in promoting equitization of state-owned enterprises and … [Read more...] about Auctions of company shares more exciting
2010 - The Rise And Fall Of Joint Stock Companies By Tran Thanh Tung As investors contemplate the ups and downs of the past year, they must be questioning the future of joint stock companies after their savaging by the new laws The new-year blues of joint stock companies came from Decree 01/2010/ND-CP issued on January 1, 2010. This decree applies to joint stock companies when placing shares privately, which means a direct placement of shares or rights to purchase shares directly to professional securities investors or fewer than 100 non-professional investors. In order to issue shares privately, joint stock companies have to complete many procedures, internally as well as externally, for example, approving a plan for the proceeds received from private placement. In addition, companies have to register with a relevant state body, report on private placement results, provide a list of shareholders to authorities and publicize placement results on companies’ websites. This decree … [Read more...] about 2010 – The Rise And Fall Of Joint Stock Companies
Foreign firms are fast-tracking their entry into Vietnam's lucrative advertising and communications market by building alliances with local partners. Samsung Group-owned Cheil Worldwide's Cheil Vietnam Limited Company last week illustrated the trend by inaugurating a joint venture with Vietnam's Mekong Marketing Communications Corporation to provide a full marketing business with a focus on digital marketing services. Cheil Worldwide is Korea's largest advertising group. It set up a representative office in Vietnam a few years ago and wanted the new joint venture to grow into one of Vietnam's top three advertising agencies in the next three years, said Cheil Vietnam director Dion Lee. The inauguration came shortly after WPP, the world leader in marketing communications services, announced its wholly-owned global public relations and public affairs firm Burson-Marsteller was to launch Burson-Marsteller Vietnam. Burson-Marsteller Vietnam is a joint venture with local partner Chu … [Read more...] about Foreign companies take shortcuts into Vietnam
Lifting foreign share limits: the wrong medicine? (04-09-2007) Investors stare at the electronic boards in a securities company in Ha Noi. Lifting foreign ownership limits is viewed as a controversial way to stimulate the stock market. — VNS Photo Viet Thanh HA NOI — Increasing foreign ownership limits remains a prickly issue on the stock exchange, as investors search for ways to drag the bourse out of its recent funk and raise demand for shares. Earlier this month, the Securities Depository Centre accidentally set the foreign ownership limit for Sai Gon Thuong Tin Commercial Bank (Sacombank) at 49 per cent instead of the State regulated 30 per cent as the company issued 236 million additional shares. The resulting surge in buying helped foreign investors acquire 1.2 million Sacombank shares above the limit. The incident proved foreign hunger for stock and is being used by advocates as evidence for altering ownership limits. Dang Quang Gia, a lecturer at the HCM … [Read more...] about Lifting foreign share limits: the wrong medicine?