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Rajah Lehal

Purchase Price May Be Satisfied by Cash or Securities

June 27, 2015

Links from this article: Read the article here.

If the subscriber under a subscription agreement is a corporate body, they may satisfy the purchase price with a mix of cash and equity/debt securities.

According to this article Keppel REIT (Keppel) will purchase a one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 from its sponsor, Keppel Land, valued at S$1.25 billion. The estimated purchase consideration was S$710.1 million, which was to be fulfilled with a combination of cash and Keppel REIT units.

Read the article here.Take away:

  • If your corporation is entering into a subscription agreement to purchase units of a company, consider negotiating a purchase price to be paid in cash and securities
Purchase Price
Subscription Agreement
Consideration
Company Formation

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.