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limited company acquisition question
27-03-2007, 08:39 AM
#1
Let's say a 3rd party was interested in acquiring/merging a private limited company that was completely owned by five parties with a 20% stake each.
Let us also say that an offer was tabled by this prospective purchaser that four of the five stakeholders found acceptable.
I have two questions:
1. Can the remaining stakeholder be compelled to sell their 20% stake once the other 80% is acquired in the company by a single 3rd party ?
2. If the remaining stake holder can not be compelled to sell, what becomes of their stake should such a large controlling interest be taken in the company by a buyer intending to merge it with other, larger companies ?
Many thanks for any insight anyone can share with someone unaccustomed to these matters.
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