In today’s briefing:
- Dissolving the Parent-Subsidiary Listing Is a Powerful Way to Increase Valuations?
Dissolving the Parent-Subsidiary Listing Is a Powerful Way to Increase Valuations?
- While this was a major step forward, it did not adequately explain how Fujitsu would invest the cash from the sale of these non-core businesses in its core businesses.
- The investment strategy of buying listed subsidiaries with parent-subsidiary listings was shown to be reasonable. The exit risk may be lower when the parent makes the subsidiary a wholly-owned subsidiary.
- If valuations are enhanced by expectations of increased corporate value through reviews of the parent’s business portfolio, the dissolution of the parent-subsidiary listing is a powerful way to enhance valuations.
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