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reverse takeover

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › reverse takeover

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • Author
    Posts
  • June 23, 2017 at 7:57 am #393870
    Vipin
    Member
    • Topics: 151
    • Replies: 365
    • ☆☆☆☆

    company A- a private co, the bidder(not listed)
    Company B- a public co, the target.(listed)

    Company A purchased the shares enough to have a controlling stake in company B.
    shares of B is exchanged with shares of A.

    so, shareholders of A co. has shares of A and B.
    and shareholders of B co. has shares of A and B(but not enough to have a control)

    even after this, Company B is the only one listed. How can they trade shares of company A in stock exchange?

    June 23, 2017 at 5:16 pm #393916
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Because the shares in A are exchanged for shares in B, everyone only then owns B’s shares.

    B is listed and so the ‘new’ A with only B’s shares in it, has become listed and the shares can be traded on the stock exchange.

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