Acquisition Of Stock Companies in Malaysia

Acquisition of stock companies in Malaysia may be done by either a merger or an acquisition. A merger is a combination of two companies where one company is absorbed by the other. An acquisition is a purchase of one company by another. In both cases, the shareholders of the acquired company become shareholders of the acquiring company.

There are several reasons why a company may choose to acquire another company. One reason is to gain access to the other company's technology or products. Another reason is to expand into new markets. Still another reason is to increase market share.

There are several ways to finance an acquisition. One way is to use cash on hand. Another way is to issue new shares of stock. A third way is to borrow money.

The process of acquiring a company in Malaysia begins with the negotiation of a purchase agreement. Once the agreement is reached, the acquiring company must obtain the approval of the shareholders of the acquired company. The shareholders of the acquired company will vote on the acquisition. If the acquisition is approved, the acquiring company will then complete the purchase.