One of my positions continues to get beaten down by bad news. The latest is that one of its largest stakeholders might go bankrupt.
My question here is what actually happens if a large stakeholder, in this case one that holds for example 49.9% of a company, goes bankrupt and would have to sell its shares.
On one hand, one might say that the shares would go down but, on the other hand, one might say that it would not as long as there are people or institutions who scoop up the shares, right?
The current share price of Simec Atlantis (SAE) is dropping, very likely because of their latest press release, but is this actually a reason for concern? The inherent risk that is carried by this business set aside for a moment, of course. I am just talking about a major shareholder going bankrupt. In my point of view, this should not really affect the share price (at least not from a rational standpoint).
Just as a side note: A few days later this article was published where the director of the company explained that everything was "business as usual" and that the shares will be transferred to another company or institution. Since it is part of a larger group of business this seems to by a possibility and something I didn't think about at first.