Complex Group Demerger

A reorganisation of interests of £37m

The demerger of a privately owned group of 30 companies engaged in a variety of activities such as textile trading, property development and property finance presented a complex case for our team of specialists.

It was determined that a Newco should be set up for the purpose of an s110 reorganisation, which sees parts of the group transferred to alternative companies to allow shareholders to separate their business interests without triggering a tax event. This Newco was duly established and placed into a Members’ Voluntary Liquidation (MVL).

The demerger of interests had a value of over £37m, although this was primarily a reorganisation of interests rather than a cash distribution.