Tag-Along Right

Tag-Along Right

The contractually guaranteed right of a minority shareholder to sell his/her stake in a company if the majority shareholder does so. The tag-along rights further guarantee the exact same terms to the minority shareholder. This protects the minority shareholder from the possibility that a new majority owner will come along and ruin the company or take it in a direction disadvantageous to the minority shareholder. Tag-along rights are also called co-sale rights and are common in venture capital agreements.
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The agreement is subject to financing and the terms of the partnership agreement which provides for a 30-day right of first refusal with an additional 15-day tag-along right to our partner.
A Mitsubishi subsidiary has a tag-along right to sell its 32.4% stake in the Hunter Valley Operations partnership.
'The transaction is in line with the tag-along right of Orix and GT Capital Group's decision to continue its indirect participation in the power industry,' GT Capital said in a separate disclosure Friday.
It also has a tag-along right, which allows it to sell its holdings in the joint-venture company, Alphaland Bay City (ABC), on the same terms Alphaland is transferring its shares to Ashmore.
Such provision is commonly agreed along with a "tag-along right" for the minority, so that the majority cannot sell their shares without any purchaser also making the same offer to the others.
If the investor is not willing to remain a co-owner with the proposed third-party purchaser, the minority investor can elect to exercise its tag-along right and participate in the sale to the third party.
Marubeni had now said it will exercise its tag-along right for the sale of its stake in Dartbrook.
The move comes after Marubeni Coal declared its plan of exercising its tag-along right to sell its 16.67% stake in the Dartbrook JV.
The sale is a result of the Canadian company's exercising its tag-along right as part of Spanish transport infrastructure company Ferrovial SA's (MCE:FER) offload of a 5.72% indirect stake in Heathrow Airport Holdings to Stable Investment, which was unveiled on Wednesday.
The agreement also allows BOI certain customary investor protections, including prohibiting the issuance of securities in CB&T senior to its common stock, and granting BOI certain registration rights, rights to participate in future financings, rights of first refusal and certain tag-along rights.
The acreage swap will allow Jericho to increase its acreage position in areas in or near current horizontal well development; participate in the drilling of multiple horizontal wells targeting the Meramec and Osage formations within the companys acreage footprint; continue to aggregate critical drilling, completion and lateral placement data from a STACK operator; secure tag-along rights for a portion of its Blaine County STACK JV acreage; and increase production and potentially reserves.
Under the mandatory tender offer for all the shares of BBVA Chile required under Chilean law or the Said family's tag-along rights under the shareholders agreement of BBVA Chile, the Said family has the right to sell its shares of BBVA Chile on the same basis to Scotiabank.