In: Accounting
Damian's & Co was officially delisted from the ASX in mid-2017, after it was bought by an overseas private equity firm. What could be the possible reasons behind Damian’s decision to exit the stock market? Please provide at least TWO reasons and briefly explain.
Delisting from a Stock Exchange is a process in which a company voluntarily or involuntarily removes its shares from the Exchange and thus public will no longer be free to trade in those shares. It is a move towards making a publically listed company going private.
There could be many reasons to delist a company, some are as follows: