Challenges of the privatization process: The Case of TIBA Motors Corporation

This case study illustrates the issues regarding the initial public offer (IPO) of TIBA, an auto manufacturing company. Iran had recently initiated a privatization program. TIBA, the second leading company in the Iranian auto industry,was privatized in a vague and non-competitive manner. The directo...

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Main Authors:	Zandi Pour Joopari, GholamReza, Shahabi, Alireza, Naysary, Babak
Format:	Article
Language:	English
Published:	Management Centre, IIUM 2012
Subjects:	HD28 Management. Industrial Management
Online Access:	http://irep.iium.edu.my/32572/ http://irep.iium.edu.my/32572/1/Case_Tiba.pdf

id	iium-32572
recordtype	eprints
spelling	iium-325722013-11-06T08:01:04Z http://irep.iium.edu.my/32572/ Challenges of the privatization process: The Case of TIBA Motors Corporation Zandi Pour Joopari, GholamReza Shahabi, Alireza Naysary, Babak HD28 Management. Industrial Management This case study illustrates the issues regarding the initial public offer (IPO) of TIBA, an auto manufacturing company. Iran had recently initiated a privatization program. TIBA, the second leading company in the Iranian auto industry,was privatized in a vague and non-competitive manner. The directors of TIBA abused the Direct Benefits of Control (DBC) and exploited the existing information asymmetry in the market to take for themselves a massive block of TIBA shares through an investment company jointly set up by TIBA and a private sector company governed by TIBA directors. This IPO and the manner in which the investment companies were financed remain controversial. This study attempts to analyze this process and highlights its pitfalls. Management Centre, IIUM 2012-12-29 Article PeerReviewed application/pdf en http://irep.iium.edu.my/32572/1/Case_Tiba.pdf Zandi Pour Joopari, GholamReza and Shahabi, Alireza and Naysary, Babak (2012) Challenges of the privatization process: The Case of TIBA Motors Corporation. IIUM Journal of Case Studies in Management, 3 (2). pp. 32-36. ISSN 2180-2327
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HD28 Management. Industrial Management
spellingShingle	HD28 Management. Industrial Management Zandi Pour Joopari, GholamReza Shahabi, Alireza Naysary, Babak Challenges of the privatization process: The Case of TIBA Motors Corporation
description	This case study illustrates the issues regarding the initial public offer (IPO) of TIBA, an auto manufacturing company. Iran had recently initiated a privatization program. TIBA, the second leading company in the Iranian auto industry,was privatized in a vague and non-competitive manner. The directors of TIBA abused the Direct Benefits of Control (DBC) and exploited the existing information asymmetry in the market to take for themselves a massive block of TIBA shares through an investment company jointly set up by TIBA and a private sector company governed by TIBA directors. This IPO and the manner in which the investment companies were financed remain controversial. This study attempts to analyze this process and highlights its pitfalls.
format	Article
author	Zandi Pour Joopari, GholamReza Shahabi, Alireza Naysary, Babak
author_facet	Zandi Pour Joopari, GholamReza Shahabi, Alireza Naysary, Babak
author_sort	Zandi Pour Joopari, GholamReza
title	Challenges of the privatization process: The Case of TIBA Motors Corporation
title_short	Challenges of the privatization process: The Case of TIBA Motors Corporation
title_full	Challenges of the privatization process: The Case of TIBA Motors Corporation
title_fullStr	Challenges of the privatization process: The Case of TIBA Motors Corporation
title_full_unstemmed	Challenges of the privatization process: The Case of TIBA Motors Corporation
title_sort	challenges of the privatization process: the case of tiba motors corporation
publisher	Management Centre, IIUM
publishDate	2012
url	http://irep.iium.edu.my/32572/ http://irep.iium.edu.my/32572/1/Case_Tiba.pdf
first_indexed	2023-09-18T20:47:00Z
last_indexed	2023-09-18T20:47:00Z
_version_	1777409741467680768

Challenges of the privatization process: The Case of TIBA Motors Corporation

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