Answering questions of shareholders about M&A rumors related to Thu Duc Housing Development Joint Stock Company (Thuduc House), at the recent annual general meeting of shareholders, Thuduc House representative said that M&A activities usually takes place and is popular in the market, especially for listed companies and it usually comes in two forms: one is hostile and the other is development.
For the hostile form, the enterprise needs to take appropriate measures to respond, and for the form of joint development, the business is very welcome.
Regarding dealing with M&A situations mentioned by shareholders, the representative of Thuduc House stated that the general trend of the world often uses one of three ways: firstly, enterprises need to prevent to competitors raising the ownership rate of shares to the dominant level (maybe by issuing more shares, buying back shares of other shareholders to increase the ownership rate, or informing shareholders to strengthen the trust of shareholder).
Second, implement measures to make the opponent realize that there is no goal when implementing the M&A strategy. Thirdly, M&A is the opposite if it knows the competitor and if the business has enough financial capacity to perform.
Thuduc House representative also said that M&A activity is a normal phenomenon of the market economy and the general trend of the international economy and that it happens frequently in the world, especially for listed companies. Stock market when the stock price is influenced by the economy and many related factors, it is important that the company has the right and appropriate strategies to prevent.
“This is also an experience in management that we need to learn to draw appropriate strategies to ensure the stable development of the company in the future,” said Thuduc House.