Asset purchase

What is meant by an 'intra-group reorganisation'?

An intra-group reorganisation involves:

1. •

   a reorganisation of the ownership of group businesses and/or assets, by way of an asset sale and purchase (the business and/or assets of a group company being sold by one group company to another group company), and/or

2. •

   a reorganisation of the ownership of group companies, by way of a share sale and purchase (the share capital of a group company being sold by one group company to another group company)

The reorganisation will comprise either a single transaction or a series of transactions.

For an overview of the issues and processes in the planning and implementation of an intra-group reorganisation, see Flowchart: Intra-group reorganisation—common issues—flowchart and for a summary of the key steps involved in an intra-group reorganisation of assets, see Checklist: Intra-group reorganisation (by asset sale)─checklist.

Reasons for an intra-group reorganisation

Intra-group reorganisations are carried out for a variety of reasons, although the key motivation is generally to boost administrative, operational or economic efficiencies. Reorganisations may be linked to a sale or acquisition transaction with a third party, whether:

1. •

   before