The commercial structure of merger by share exchange is defined as that the merger company exchanging the shares of the target company for the shares held by shareholders of the target company by issuing new shares as consideration by way of private placement, and the merger company becoming the controlling shareholder, or even sole shareholder of the target company.
Ultimately, the merger company survives and the target company ceases to exist upon merger by absorption. Instead of becoming a subsidiary of the merger company, the target company eventually disappears (by merger). Following the share exchange, the objective of the merger company is to merge the assets of the target company, instead of becoming a wholly owned subsidiary.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员。
Wang Xiaoxin is a senior counsel, Beijing Arbitration Commission/Beijing International Arbitration Centre (BAC/BIAC), and Ai Dunyi is a Masters candidate at the School of Transnational Law of Peking University