Funding of mergers and takeovers identifies capital instruments and conditions for structuring merger consideration and financing. Mergers should create incremental present value beyond standalone firm values. Consideration for mergers and takeovers can be funded through equity, preferential allotment, shares issued by the transferee, preference shares (with dividend servicing requirements), securities with differential rights, non voting shares, stock swaps, ESOPs (nontransferable and limited to bona fide employees), bank and institutional loans, External Commercial Borrowings subject to permitted uses, Indian/Global/American Depository Receipts for foreign capital access, rehabilitation finance for sick units, and leveraged or management buyouts involving substantial debt financing.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Funding of mergers and takeovers identifies capital instruments and conditions for structuring merger consideration and financing.
Mergers should create incremental present value beyond standalone firm values. Consideration for mergers and takeovers can be funded through equity, preferential allotment, shares issued by the transferee, preference shares (with dividend servicing requirements), securities with differential rights, non voting shares, stock swaps, ESOPs (nontransferable and limited to bona fide employees), bank and institutional loans, External Commercial Borrowings subject to permitted uses, Indian/Global/American Depository Receipts for foreign capital access, rehabilitation finance for sick units, and leveraged or management buyouts involving substantial debt financing.
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