Core Viewpoint - The article discusses the trend of privatization and delisting of Hong Kong-listed companies, highlighting that 21 companies have completed this process in 2023 due to factors such as low trading volumes, loss of financing capabilities, and strategic transformations [2][4]. Group 1: Privatization Details - Minmetals Land announced its plan to privatize and delist from the Hong Kong Stock Exchange, offering a buyout price of HKD 1 per share, which represents a premium of approximately 104.08% over the last trading day [4]. - The privatization process typically involves the controlling shareholders proposing to buy out all issued shares, often at a price higher than the market value, indicating a willingness to compensate minority shareholders [4][5]. - In addition to small-cap companies, larger firms like HSBC have also announced privatization plans, with HSBC proposing a cash buyout of HKD 155 per share, reflecting a 30% premium over the previous closing price [4]. Group 2: Reasons for Privatization - The primary reasons cited for privatization include providing exit opportunities for shareholders, long-term low liquidity of the company's stock, limited capital raising capabilities, and the need for strategic flexibility [4][6]. - Companies often face challenges such as low trading volumes and diminished financing abilities, which drive the decision to privatize [6]. Group 3: Market Reactions and Outcomes - Following the announcement of privatization plans, most companies experience significant stock price increases, as seen with Minmetals Land's stock surging by 90% on October 24 [4]. - However, there are instances where privatization proposals fail due to shareholder opposition, as demonstrated by the case of Goldlion, where a proposed buyout was rejected by a significant percentage of shareholders [5].