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Interesting; if someone does this, do they have to pay a premium at all, or are they able to buy them at the exact current market rate? Also is this just for pu
by saghm 3y ago
Interesting; if someone does this, do they have to pay a premium at all, or are they able to buy them at the exact current market rate? Also is this just for publicly traded companies or private ones as well? At least in the US, my understanding is that private companies set the "fair market value" of their shares themselves, so I'd be worried that someone could purposely set the price low to be able to buy them out more cheaply.
- buzer 3y agoThere is redemption committee in Finland Chamber of Commerce that will assign a arbitration court to handle the redemption. They will also assign a trustee who will represent the minority shareholders. The valuation is decided during the arbitration process. From what I understand if there has been previous offer to buy it's quite likely that will be used at least as initial basis for the price. There seems to be at least one English article about the process: https://insights.fondia.com/fi/en/articles/corporate-law/shareholders/redemption-of-minority-shares/redemption-procedure https://insights.fondia.com/fi/en/articles/corporate-law/sha...
- saghm 3y agoThanks for the info! I'll take a look