RE: The reasons a public company would setup a private limited company are as follows !18 Sep 2024 16:27
Ade - i dont post here often, but your messages today are just wrong!
1. they havent offloaded the ammonia cracking business. they own 100% of it, how is that offloading?
2. it isnt profitbale at this stage anyway
3. on what basis does this mean AFC are going private? Companies set up new subsidiary companies all the time, that they own, not offload as you put it.
not sure on the financing side of it, but if the new subsidiary does need investment at some point, it would have needed it regardless of whether its in the name of AFC or Hyamtec Ltd. dont think it makes any real difference from an AFC shareholders point of view. it hasnt been sold off or partly sold off to other shareholders. AFC are sole shareholder. if it does get sold off in the future, then someone has to pay AFC for the shares, they dont 'offload' it for free!