612 Merger relief
612 Merger relief
Companies Act 2006 | Legislation

(1)     This section applies where the issuing company has secured at least a 90% equity holding in another company in pursuance of an arrangement providing for the allotment of equity shares in the issuing company on terms that the consideration for the shares allotted is to be provided—

(a)     by the issue or transfer to the issuing company of equity shares in the other company, or

(b)     by the cancellation of any such shares not held by the issuing company.

(2)     If the equity shares in the issuing company allotted in pursuance of the arrangement in consideration for the acquisition or cancellation of equity shares in the other company are issued at a premium, section 610 does not apply to the premiums on those shares.

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