AT a time when privatisations are thrashed out behind closed doors, the question of whether institutional investors are included among minority shareholders has become increasingly vital.
When small investors combine forces, their collective voices carry more weight.
Last week, Mark Mobius of Templeton Investment Management, in his capacity as a minority shareholder, overwhelmed the management of the East Asiatic Company (Hong Kong).
He poked holes in East Asiatic's privatisation plan, and it was later scrapped.
Dennis Cassidy, managing director of corporate finance at Standard Chartered Asia, believes there will be more privatisations.
The question of whether they are carried out at the expense of small investors has caught the attention of politicians. The Democratic Party, probably alerted by irate small investors, asked Financial Services Secretary Rafael Hui Si-yan to address the issue in a Legislative Council session last Wednesday.
