> Rather than using external capital to buy investors out at a premium, the usual way to take a firm private, Mr Samwer has used company cash to buy back €223m ($260m) of its own shares. This pushed his clan’s stake to over 50%. He plans to use another €1bn of Rocket’s cash to buy out minority shareholders at €18.57 a share, the volume-weighted average price in the past six months but down from the ipo price of €42.50.
> Investors are under no obligation to sell their shares, of course. But those who stay put will have little power to affect the course of the firm now that the Samwer brothers control the board with their majority stake. Rocket has stated it will be “better positioned” for long-term development if not listed on a stock exchange.
It seems like the main tipping point is one group (the Sameer "clan") getting into a control position. Presumably enough other investors agreed to the earlier buybacks that allowed that to happen.
> Investors are under no obligation to sell their shares, of course. But those who stay put will have little power to affect the course of the firm now that the Samwer brothers control the board with their majority stake. Rocket has stated it will be “better positioned” for long-term development if not listed on a stock exchange.
It seems like the main tipping point is one group (the Sameer "clan") getting into a control position. Presumably enough other investors agreed to the earlier buybacks that allowed that to happen.