LETTER OF INTENT BETWEEN A RACER

Зарегистрируйтесь, чтобы просмотреть полный документ!

LETTER OF INTENT BETWEEN : A : RACER FINANCE SA (Parent Co of DERIF S. A. , known as CIREL) - DENOMINATION SOCIALE : REGISTERED NAME - NOM COMMERCIAL : TRADEMARK AND B : BINTEC COMMUNCIATIONS AKTION GESELLSCHAFT - QUOTED ON A GERMAN MARKET (Hereinafter BINTEC OR BUYER) 1

§ 1 : SCOPE OF THE LOI - NON BINDING, BUT BINDING FOR : * PROVIDING INFORMATION (§ 6) * EXCLUSIVITY (§ 8) * EXPENSES (§ 13) * CONFIDENTIALITY (§ 14) * GOVERNING LAWS (§ 15) 2

§ 1 : SCOPE OF THE LOI HOWEVER, SHOULD HAVE BEEN BINDING FOR : * CONFIRMATION (§ 9) * MANAGEMENT THE ORDINARY COURSE OF THE BUSINESS (§ 10) * GOOD FAITH (§ 12) THE COMPLETION OF THE TRANSACTION ARE NON BINDING STIPULATIONS ONLY THE PRICE 3

§ 2 CONSIDERATION CASH : 50 Million + BINTEC SHARES : EQUIVALENT OF 28 Million + EARNOUT : FROM 6 Million TO 0 IN BINTEC SHARES HOW TO PAY WITH THE BUYER’S OWN SHARES ? ? 4

Ph. D Share Capital Increase Others Frankfurt Stock Market Contributes 28/78 RACER φ S. A. BINTEC S. A. Sales 50/78 100% Shares 28/78 Cash 50/78 DERIF S. A. DRAWBACKS: • FINANCIAL COST, NO FISCAL UNITY POSSIBLE • HOW TO PROCEED WITH THE EARNOUT? (6 MILLION, CONTINGENT) 5

ALTERNATIVE Ph. D Frankfurt Stock Market Others 28 million shares of Bintec locked up RACER φ S. A. BINTEC COM AG Purchase for 28 million of shares + 6 million 100% DERIF S. A. 100% NEW CO SPV S. A. S FISCAL UNITY New Co interests offset against Derif profits Lend Borrow BANKS 78 + 6 = 84 HOWEVER SPV SHALL BE A FRENCH CO. 6

« POTESTATIVE » CONDITION ? FRENCH CIVIL CODE Article 1170 et seq SUBJECT TO COMPLETELY SATISFYING RESULTS OF THE DUE DILIGENCE CONDUCTED BY BINTEC BUYER, DEBTOR OF THE OBLIGATION (TO BUY), CAN DECIDE IF HE PROCEEDS OR NOT, AT ITS OWN DISCRETION (CASS. COM. -22 -2 -1967, 07 -04 -1967) PURELY « POTESTATIVE » : VOID : C. CIV. 1170 WITH A RISK FOR THE DOCUMENT CONDITION SIMPLY « POTESTATIVE » : VALID : C. CIV. 1171 7

« POTESTATIVE » CONDITION ? FRENCH CIVIL CODE Article 1170 et seq A CONDITION IS SIMPLY « POTESTATIVE » WHEN A MINIMUM VALUE OF THE TARGET’S NET WORTH IS INDICATED IN THE DOCUMENT (PARIS APPEAL COURT : CA PARIS 28. 06. 2002) COMPULSORY ACQUISITION : NO IF NON SATISFACTORY INDEMNIFICATION FOR UNFAIR BREACH OF NEGOTIATION (Cass. 1ère Civ. 06 -01 -1998) 8

SHARES AS A MEANS OF PAYMENT - CONTRIBUTION OF 28 th/78 th OF DERIF SHARES TO BINTEC Ø Ø Ø DEED OF CONTRIBUTION OPINION OF AN INDEPENDANT « CONTRIBUTION AUDITOR » EXTRAORDINARY SHAREHOLDERS MEETING AT THE BENEFICIAIRY’S LEVEL (BINTEC AG) SHARE CAPITAL INCREASE DILUTION OF THE EXISTING SHAREHOLDERS 9

SHARES AS A MEANS OF PAYMENT TAX WISE, CAPITAL GAINS ARE TAXABLE: - WHEN THE SHARES RECEIVED AS A CONSIDERATION ARE SOLD, OR WHEN THE SHARES CONTRIBUTED ARE SOLD. HOWEVER, WHEN THE BENEFICIARY OF THE CONTRIBUTION RE-INVESTS A PART OF THE PROCEEDS OF THE SALE WITHIN THE TWO YEARS FOLLOWING THE SALE, THE TAX ON CAPITAL GAINS IS POSTPONED. 10

COMPLETION - CLOSING EXECUTION POSSIBILITY OF RETROACTIVITY ? ? 11

COMPLETION - CLOSING EXECUTION § 3 : NET ASSETS VALUE : AT COMPLETION, WITH A MINIMUM REFERENCE TO N. A. V. DETERMINED TO COMPLETION 12

COMPLETION - CLOSING EXECUTION § 4 : PREFERABLY AN UMBRELLA AGREEMENT WITH VARIOUS CHAPTERS REPRESENTED BY VARIOUS AGREEMENTS (LABOUR AGREEMENTS, WARRANTY…) 13

COMPLETION - CLOSING EXECUTION § 5 : TRANSACTION CONDITIONAL UPON: • A SATISFACTORY AUDIT AND • REPS AND WARS 14

COMPLETION - CLOSING EXECUTION § 6 : AVAILABILITY OF THE INFORMATION, ONE WEEK NOTICE PERIOD 15

COMPLETION - CLOSING EXECUTION § 7 : CONSENTS PRIOR TO TRANSACTION (BANKS, PRINCIPAL, LANDLORDS, INSURERS…) § 8 : CONSIDERATION UNNECESSARY UNDER FRENCH LAWS FOR THE EXCLUSIVITY THE CLAUSE IS RESTRICTED : NOT SOLICIT OFFERS !!!! 16

COMPLETION - CLOSING EXECUTION § 9 : FAIRLY COMMON § 10 : THIS CLAUSE SHOULD HAVE BEEN BINDING : TO CONDUCT BUSINESS WITH THE PRUDENT MAN PRINCIPLE § 11 : PHD SHALL SIGN AS CHAIRMAN AND FOR HIMSELF 17

COMPLETION - CLOSING EXECUTION § 12 : NEGOCIATION IN GOOD FAITH ! NEEDLESS TO SAY !!! § 13 : COST OF COUNSEL § 14 : NON DISCLOSURE. WATCH OUT : OUTSIDE COUNSEL IS MENTIONED: STIPULATION ON BEHALF OF A THIRD PARTY 18

COMPLETION - CLOSING EXECUTION § 15 : GOVERNING LAWS § 16 : AUTHORISATION OF THE TRANSACTION BY BINTEC’S SHAREHOLDERS : « POTESTATIVE » CLAUSE? NO, IN THE CASE OF CONTRIBUTION 19

Скачать презентацию LETTER OF INTENT BETWEEN A RACER

7c235502207f321314e523a62e708c6d.ppt

Количество слайдов: 19