Macmillan India

MNC Promoter robbing Small Shareholders

Posted by : subramaniam_tce
Price when posted : BSE: Rs 144.00 ( 1.12 % ), NSE: Rs. 141.40 ( -2.45 % )

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Macmillan has announce merger & demerger arrangement to consolidate its publishing and outsourcing business in to separate companies. While the consolidation is a good news the catch is that they are making publishing entity unlisted and hence forcing the small investors to sell that to the promoters
=> the brand value is in publishing and they valued the business at meager 69, remember 5 yrs bck all they had was only the publishing business and it was selling at arnd Rs 400
=> If the investor does not respond to the notice, the shares in publishing entity is automatically sold to the promoters and becomes irrevocable after 60 days from issue of cheques :o
=> The stealthy management is aware that most of the small shareholders are not active participant in markets and they don\\`t track any news and leveraging on the lethargy of the investors to cheat them. If these investors haven\\`t updated their current address they won\\`t even notice that they have been robbed :(
=> The most interesting thing is how pricewater coppers valued the publishing business to be 69 / share....