Advantages And Disadvantages Of Short Sale

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Short sale Short sale is a sale of securities in which investors does not own the securities, they simply borrow the securities, usually from the broker in expectation that the securities price will decline and allow them to make profit by buy back the securities at a lower price. Short selling often used by investors to either hedge or speculate and can be classified as speculative activity. The benefit of short sale is that it allows investors to add value to their portfolio even when there’s a bear market since it can be difficult to make profit in a bear market without short sale and if investors use short sale to hedge, they can minimize their portfolio risk. The downfall of short sale is that the loss can be limitless if the price of…show more content…
Transaction structure can be divided into two steps. First is the initial acquisition where CP ALL acquires approximately 64.35% and the next step is the tender offer for the remaining shares at the tender offer price of THB 787 per share. There’re several rationale behind the acquisition of MAKRO, Improve operational efficiency, Enhance economy of scale, Optimize capital structure, Open opportunity for international expansion, Acquire top tier asset and capture a new segment of retail market and Unlock value of under-utilized land.

Makro has been operating as the Cash and Carry Trade Centers, selling consumer goods to customers which consist of various product such as Electrical Appliances, restaurant and food service business, Textile and clothes and Beverages, snacks. The acquisition of MAKRO makes CP ALL PCL Thailand’s leading in both retail and wholesale business and Asia third largest retailer not including Japan. MAJOR and MPIC

Date of submission of the Tender offer : August 2,
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