This Practice Note focuses on the regulatory Requirements under the AIM Rules for Companies (AIM Rules) applicable to an AIM company which is carrying out a transaction classed as a Reverse Takeover.
A reverse takeover under the AIM Rules is essentially an acquisition by an AIM company of a business, company or assets (target) where the target is larger than the AIM company itself or which would result in a fundamental change in the business, board or voting control of the AIM company.
It should be noted that there are also similar provisions on reverse takeovers in the UK Listing Rules published by the Financial Conduct Authority (FCA) that apply to companies listed on the Official List. The rules relating to listed companies are generally more prescriptive than those that apply to AIM companies.
Key provisions
The key provisions an AIM company must follow when undertaking a reverse takeover are set out in Rule 14 of the AIM Rules.
Definition of a ‘reverse takeover’ under the AIM Rules
Rule 14 of the AIM Rules defines a reverse takeover as any
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Reverse Takeover definition
What does Reverse Takeover mean?
An acquisition of a business, unlisted company or assets where any percentage ratio is 100% or more or which would result in a fundamental change in the business or in a change in the board or voting control of the listed company.
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