When can the acquirer of shares obtain 100% ownership of the corporation?
- In on-market and off-market takeovers a target may be compelled to sell the totality of its securities if a person already holds 90% of the securities of the same particular class. This is known as ‘compulsory acquisition.’
- In a scheme of arrangement there is an 'all or nothing' approach. A bidder knows that it will acquire 100% of the securities if successful. If unsuccessful it will not acquire any. It will be successful if it has the approval of 75% of voters by value and 50% by number of voting security holders.
Read some more FAQS from our Mergers & Acquisitions section