13 October 2017

Taking Cayman Islands companies private - part two

This is the second note issued by Carey Olsen regarding “take-private” transactions, to read our first please click here. Such transactions involve taking listed Cayman Islands companies private, often as a precursor to re-listing them on a more favourable stock exchange.

Several recent take-private transactions have been accomplished by using the statutory merger regime in Part XVI of the Companies Law (as revised) (the “Law”). However, given the incidence of dissenting shareholder litigation following such mergers, some clients are considering other avenues to achieve the same end. Two such additional avenues exist: a scheme of arrangement under section 86 of the Law; and a tender-offer and “squeeze-out” under section 88 of the Law.

This note outlines the different legal options for taking a Cayman Islands company private and analyses the potential advantages and disadvantages of each.

To read more, please download our PDF.


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