reverse takeover

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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June 23, 2017 at 7:57 am #393870
Vipin
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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
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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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