Abstract
A reverse take-over of a listed company can provide an alternative method of going public for entrepreneurs seeking a stock exchange listing for shares in their company. This paper is a first step in the investigation of reverse take-over as a listing device and seeks to attract attention to the relative attractiveness of reverse take-over versus initial public offering. It provides an in depth case study of a high profile reverse take-over completed in 1995 that resulted in a back-door listing of a private company, Jaya Tiasa Plywood, via listed Berjaya Textiles (now renamed Jaya Tiasa Holdings). The wealth effects on the participating parties, namely owners of Jaya Tiasa Plywood, the minority shareholders and former controlling shareholder of Berjaya Textiles are analysed which clearly show a win-win-win situation for all. Three possible sources of gains are identified namely Chang's (1998) share-financed acquisition of private target conveying positive information about acquiring company, Merton's (1987) investor recognition hypothesis, and Lang, Stulz and Walkling (1989) and Servaes (1991) bidder and target relative Qs hypothesis.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
