*for those with corporate & listing knowledge*

  1. 840 Posts.

    I would appreciate comments on the following, from members who have a good understanding of corporate structure & public listing procedure.

    Company A is a public listed company with a market cap of $20mil, minimal debt but is not performing well.

    Company B is an unlisted company with assets of $150mil & turnover last year was $250mil.
    Company B holds 18% of the shares & 19% of the options in company A.

    Both companies operate in different sectors of the same industry although their businesses are markedly different.

    Company B has indicated that it would be keen to publicly list this year.

    My question:
    What would be the advantages, if any, for Company B to takeover Company A & achieve their public listing in that manner rather than issueing an IPO?

    Any ideas?

    PS. Figures are only ballpark - to protect the innocent.
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