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I am struggling to get my head around the actual play by play involved in a reverse acquisition and was hoping someone could help me out. Im just failing to get the various share dealings down correctly. Who buys who to begin with?
I dont understand why the private company doesnt just buy the public company, wouldnt that be the same?
Thanks for any help guys
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There is just one transaction, The plc issue large amount of shares specificly to one limited company, and the limited company end up controling the plc.
In legal form, the PLC issue shares to acquire the limited one, so the PLC will not have to get down the listing. However in the substance of the transaction, the limited company control the plc, so the group is on the list.
This transaction helps limited company get on list without doing the compliacated assignments in an IPO.
Hope this can help.
PS. if the limited one directly acquire the plc, the plc have to get down from the list and become private.
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