Delisting

How the money is made

• 1The delisting and its reason are announced.
• 2If orderly, there is usually a buyout offer or a sell-out right at a set price.
• 3If forced by a breach, there may be no offer at all.
• 4Anyone who does not sell is left holding shares with nowhere to trade them.

What to watch

• The reason: voluntary, the result of a takeover, or a compliance failure.
• Whether a buyout offer exists, and at what price.
• Whether minorities have a sell-out right or face a squeeze-out.
• The exact deadline to the last trading day.
• What alternative venue remains afterwards, if any.

Typical risks

• Being left holding illiquid shares.
• A delisting with no offer: there is no exit at a market price.
• The exit price can sit below fair value.