Why Listed Company Go For Privatization?

Company prefer to privatize if:


1) Valuations are cheap if anything below 1x PBV and 6x PER especially if the company has a strong balance sheet preferably in a net cash position


2) Shares are too illiquid and hence no point keeping them listed if daily trading volume above 1bn and market capitalization above RM1bn

3) Management intends to re-list them in other markets


4) Part of a merger exercise