This week’s The Edge has an interesting article about how some ailing multinational corporations (MNCs) in Malaysia are looking at disposing their operations as exit strategies due to the slow down in businesses.
Some of these MNCs include Dell, Western Digital and Flextronics. These companies have made known in recent months that they will be laying off employees as the businesses are scaling down.
In view of these companies seeking to vacate their sites, many local Malaysian companies are finding it a great opportunity to buy up the plants and operations at a steal. Some deals are reported to be quoted at a nominal price of RM1, with the condition that the buyers will have to take the deal in lock stock and barrel along with machineries and employees.
It seems a good opportunity indeed for companies that are able to expand and meet their business needs with these cheap buys. It’s also a winning situation for the MNCs as a means to avoid coming to terms with the heavy costs of retrenchment.
Let’s see what will come of these deals and who emerges the bigger winner of it all. Can you imagine buying an entire manufacturing plant with people who are ready to operate the run the business for just RM1? What a bargain it is!
{ 4 comments… read them below or add one }
but those things (other than the rm1) might cost a lot, and might not be profitable. maybe u need to swallow all the losses made by them.
True, the suitor will need to bear the liabilities as well. But if a suitor is going to go through with this, I’m sure they are confident of bringing it back into profitability. Or so we hope!
well, we never know, maybe we can be the next Tony Fernandez, who bought Air Asia for RM 1 but have to take up all the debt
If only…