Commentary

216 Right of minority shareholder to be bought out by offeror

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

216 Right of minority shareholder to be bought out by offeror

| Commentary

216 Right of minority shareholder to be bought out by offeror

It may suit a non-accepting shareholder to be bought out under the compulsory purchase procedure. It may be somewhat frustrating, therefore, if the offeror decides that it does not wish to buy the non-accepting shareholder’s shares. In such a case, however, where the offeror reaches the 90% acceptance level, a non-accepting shareholder will generally have the right to require the offeror to acquire their shares1. Within one month of the company reaching the relevant acceptance level, the offeror must give any shareholder who has not accepted the offer notice

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