is the following possible:
Holding H owns the stock-listed company A.
Company A founds Company B.
Company B is going public.
Can Holding H buy (maybe all) shares of Company B from company A?
Hi,
Trading shares between holding and subsidiary is legal, so it should be possible for your company A to sell these shares to your holding H.
At least, that’s my guess… I have never done it.
Jan
Hey, another question.
Can holding H with traffic rights in a country buy company A with traffic rights in another country and still operate those flights?
For example, holding H based in the US wants to buy company A based in the UK.
Thanks for the reply!
Hi,
if your holding is based in the US and you buy an airline that is based in the UK, that airline will loose its traffic rights.
If you become the biggest share holder of that airline, you have control of the airline. If the majority of share holders is still based in the UK, you can operate in the UK. For example: your US holding buys 40% of the shares and 3 UK based airlines own 20% of the shares.
If your US holding buys an airline that is based in a country that is open to foreign investors, you can still operate in that country.
Jan