sohoisnotforsale and angor532Breakfee........have a read.This...

sohoisnotforsale and angor532


Breakfee........have a read.This was first posted by malmanu.

"In the protracted takeover of Sundance by Hanlong (Hanlong has been attempting a takeover of Sundance since July 2011) the renegotiated scheme implementation agreement, following the reduction in offer price from AUD0.57 per share to AUD0.45, provides for a reverse break fee. Under the renegotiated scheme implementation agreement, Hanlong must pay a break fee (approximately 1% of the equity value of Sundance) to Sundance if Hanlong materially breaches the agreement or if Hanlong attempts to reduce the scheme price. Given the uncertainty about the enforceability of a reverse break fee without PRC regulatory approval, Hanlong's obligations under the scheme implementation agreement are supported by a parent company guarantee. However, the parent company guarantee (which would also require PRC regulatory approval) is conditional on approval from the State Administration of Foreign Exchange (SAFE) – making the reverse break fee in this case somewhat illusory."

http://www.mondaq.com/australia/x/216796/M+A+Private%20equity/REVERSE+BREAK+FEES+PAYABLE+UPFRONT+THE+NEW+NAME+OF+THE+PRC+MA+GAME