Share purchase

Share purchase

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

An intra-group reorganisation involves:

•
a reorganisation of the ownership of one or more 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), and/or
•
a reorganisation of the ownership of businesses and/or assets held by one or more group companies, 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)

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: Intra-group reorganisation—common issues—flowchart and for a summary of the key steps involved in an intra-group reorganisation by sale of shares, see: Intra-group reorganisation (by share 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

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