reverse takeover

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Reverse takeover

1) A smaller company taking over a larger company.
2) Merger of the acquiring company into the target company (often to gain a public listing).
Also see Acquisiton, Reverse shell merger.

Reverse Acquisition

An act where a private company purchases a publicly traded company and shifts its management into the latter. It also normally involves renaming the publicly traded company. This allows private companies to become publicly traded while avoiding the regulatory and financial requirements associated with an IPO. In order for a reverse acquisition to happen smoothly, the publicly traded company is usually a shell corporation, that is, one with only an organizational structure and little or no activity. The two businesses can then merge the private company's product(s) with the public company's structure. It also makes initial trading less dependent on market conditions, a key risk in IPOs. However, it is important to note that a reverse acquisition only provides the private company with more liquidity if there is a real market interest in it.

reverse takeover

the TAKEOVER of one company by another company which has a lower stock market valuation (i.e. the value of the bidder's ISSUED SHARE CAPITAL traded on the stock market is less than that of the victim firm). A reverse takeover bid usually involves the bidding firm issuing shares or raising LOAN CAPITAL to finance the deal.

reverse takeover

a situation in which a smaller but dynamic company wishing to expand rapidly takes over a larger but unprogressive company, issuing SHARES or FIXED INTEREST FINANCIAL SECURITIES to raise the necessary finance to purchase the shares of the larger co mpany. See TAKEOVER.
References in periodicals archive ?
The reverse listing resulted in PBT acquiring Prescient for a total consideration of N$1.
As indicated in the Information Memorandum dated 8 March, RPONL will report in US$, following the reverse listing.
The detailed results of RPONL, together with the balance sheet following the reverse listing are set out in Appendices A to C.
Oryx intended reverse listing into Petra Diamonds, a mining company with a 29.
a) Reverse listing concerns the situation where P&O will transfer
Word parts dictionary; standard and reverse listings of prefixes, suffixes, roots, and combining forms, 2d ed.
The directories include community information from chambers of commerce, coupons, restaurant menu guides and reverse listings that allow users to determine who belongs to the unfamiliar number on their caller ID.