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Figure: Common Structure of Private Equity Investment

Other than investing in a private company, private equity may involve

investments in listed companies whereby the shares of these listed
companies will be acquired and then delisted from the stock

exchange. However, unlike other jurisdictions, this so-called çgoing-

private transactioné is not very common in Thai market practice.
This owes mainly to the stringent requirements for delisting a listed

company from the Stock Exchange of Thailand (the çSETé) and the

fact that Thai corporate law does not provide for the squeeze-out
(11)
rule. In addition, even after delisting, the delisted company will

remain its legal status as a public limited company, which cannot be

(11)
çSqueeze-outé refers to the right that entitles a majority shareholder to acquire the
remaining shares from the minority shareholders and force the minority shareholders to exit
the company. See, e.g., Legal Information Institute, Squeeze-out, https://www.law.cornell.edu/

wex/squeeze-out (last visited Dec. 8, 2019).

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