The Aussie construction firm could now be taken private, which would reduce its disclosure obligations.
Background: CIMIC is an Aussie multinational construction business, and it's the biggest in Oz. It's worked on projects like the Brisbane Airport, Sydney's Star Casino... and even the West Gate tunnel in Melbs.
What happened: CIMIC also does work across South East Asia and NZ, and last year, it announced its withdrawal from the Middle East. But it's now been accused of underpaying hundreds of workers, subcontractors and banks over there by more than $500 million 😳.
What else: CIMIC's major shareholder, ACS, has now made a bid to take the company private - which would reduce its disclosure requirements.
💡When a company lists on the ASX, it has an obligation to disclose certain information (i.e. anything that could have a material effect on the price or value of the company's shares).
💡So, if the CEO has One Direction posters in his man cave = not material. If the company has unreported liabilities = very material. This is because public companies need to be honest with investors when it comes to activities that could affect its market price or value.
💡Private companies don't have the same obligations because they only need to keep their private circle informed. So, if CIMIC is taken private, it won't need to keep investors (and the world) updated on its balance sheet while it sorts itself out.
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