Interesting company. Only concern is the attitude-mentality of the controlling shareholder. In Asia (and I think Brazil as well), there is a tendency for them to r*pe minority investors and siphon off all the money (e.g. the book "Asian Godfathers: Money and Power in Hong Kong and Southeast Asia")
It's a fair concern. Honestly I don't know how Chilean companies tend to treat minority shareholders, especially a large conglomerate like the one that controls Enaex.
Thanks for the book recommendation, just added it to my amazon list!
You can get it on Z Library - I wonder if someone has written a book like that for Latin America?
e.g. I have heard business in Chile is pretty much controlled by certain elite families who are all related that go all the way back to Spanish days (like in the Philippines) and that Brazil is full of "controlled companies" (but so are many Silicon Valley companies like Google which have 2 sets of shares - one for control and one for the public)... Studwell goes into detail about how conglomerates are structured in Asia (not sure how they do it in Latin America) at the expense of minority investors:
"Welcome to the Web
The basic mechanism for the expropriation of minority shareholders in southeast Asia is the conglomerate web, through which a godfather exercises enormous but opaque power over myriad different companies. Regular businesses – a General Electric, a Tesco, even an HSBC – have a single listed vehicle. But a godfather business has fifteen or even twenty listed vehicles that can be readily identified, with minority positions in many other listed firms that are harder to spot. As a typical example, XXXXX, Kuala Lumpur-based billionaire nephew of the late XXXX and cousin of the Singapore-based billionaire XXXX,49 has nineteen clearly identifiable listed subsidiaries. These are engaged in activities ranging from banking to air-conditioner manufacturing to real estate. XXXXX is then also present as a small but significant investor in other listed vehicles where his ownership is harder to detect and, separately, owns scores – probably hundreds – of private companies. It is the interplay between these declared public subsidiaries, untrumpeted listed companies in which the godfather has an interest, and private companies – which in most Asian jurisdictions file no public records50 – that defines much tycoon activity. Another multi-billionaire godfather, who reckons to control somewhere between 300 and 400 companies – including about a score that are acknowledged public subsidiaries – observes: ‘We sometimes set up fifteen companies in a month.’51"
My understanding of Chile is similar, an old entrenched elite still controls most relevant businesses.
That is true to an extent in Brazil, but less so in my opinion. Brazils economy and financial markets are much more diverse compared to Chile. There are plenty of new companies created, and eventually IPOed in Brazil.
Interesting company. Only concern is the attitude-mentality of the controlling shareholder. In Asia (and I think Brazil as well), there is a tendency for them to r*pe minority investors and siphon off all the money (e.g. the book "Asian Godfathers: Money and Power in Hong Kong and Southeast Asia")
It's a fair concern. Honestly I don't know how Chilean companies tend to treat minority shareholders, especially a large conglomerate like the one that controls Enaex.
Thanks for the book recommendation, just added it to my amazon list!
You can get it on Z Library - I wonder if someone has written a book like that for Latin America?
e.g. I have heard business in Chile is pretty much controlled by certain elite families who are all related that go all the way back to Spanish days (like in the Philippines) and that Brazil is full of "controlled companies" (but so are many Silicon Valley companies like Google which have 2 sets of shares - one for control and one for the public)... Studwell goes into detail about how conglomerates are structured in Asia (not sure how they do it in Latin America) at the expense of minority investors:
"Welcome to the Web
The basic mechanism for the expropriation of minority shareholders in southeast Asia is the conglomerate web, through which a godfather exercises enormous but opaque power over myriad different companies. Regular businesses – a General Electric, a Tesco, even an HSBC – have a single listed vehicle. But a godfather business has fifteen or even twenty listed vehicles that can be readily identified, with minority positions in many other listed firms that are harder to spot. As a typical example, XXXXX, Kuala Lumpur-based billionaire nephew of the late XXXX and cousin of the Singapore-based billionaire XXXX,49 has nineteen clearly identifiable listed subsidiaries. These are engaged in activities ranging from banking to air-conditioner manufacturing to real estate. XXXXX is then also present as a small but significant investor in other listed vehicles where his ownership is harder to detect and, separately, owns scores – probably hundreds – of private companies. It is the interplay between these declared public subsidiaries, untrumpeted listed companies in which the godfather has an interest, and private companies – which in most Asian jurisdictions file no public records50 – that defines much tycoon activity. Another multi-billionaire godfather, who reckons to control somewhere between 300 and 400 companies – including about a score that are acknowledged public subsidiaries – observes: ‘We sometimes set up fifteen companies in a month.’51"
That's really interesting.
My understanding of Chile is similar, an old entrenched elite still controls most relevant businesses.
That is true to an extent in Brazil, but less so in my opinion. Brazils economy and financial markets are much more diverse compared to Chile. There are plenty of new companies created, and eventually IPOed in Brazil.