Public takeovers can be effected by way of contractual offer or court sanctioned scheme of arrangement and the consideration can take the form of cash, shares or loan notes. The tax implications for the disposing shareholders may differ according to the mechanism adopted and the characteristics of the shareholder. By contrast, companies may wish to merge businesses in a way that does not involve a disposal by shareholders, albeit that these transactions will, of course, have tax consequences for the companies involved. The stamp duty and VAT implications of structuring takeovers and mergers will also need to be considered at an early stage.
