Hong Kong

Case Study - 10 November 2017

Connecting the change: How we used escrow

In this case study, we take a closer look at how a client has made use of escrow services.

Author of article:

Darren Kelland

Global Head of Private Client Services

Jurisdiction:  Far East and Europe
Service area:  Escrow services
Industry:  Retail

This is an example of a Listed Company (buyer) wishing to acquire a Target Company (seller) where the buyer will pay the sellers consideration in cash and also in new issued share capital.

Client’s challenge

A large, international Far East parent company wishes to use its wholly owned Hong Kong subsidiary to purchase a European based company being owned by a number of individuals and have a mechanism in place to control the flow of fresh issued share capital in the market.

The outcome

By liaising with various parties, including the lawyers, representatives and all parties related to the Share Purchase Agreement (SPA), it was decided that the best course of action was to hold the Listed Company’s new issued share capital on behalf of the sellers in escrow for a number of years to prevent the sellers disposing of the new shares in a single transaction. Working closely with the buyer and seller, we could assist by appointing a corporate trustee as escrow agent and acting in an administrative capacity. Escrow services ensured the terms of the SPA referred to the Escrow agreement to bind both the buyer and seller to the deferred payment arrangement.

How were Hawksford best placed to assist?

Our best team approach ensures the most appropriate and suitable team provide a trusted escrow solution, whether the escrow fund consists of shares, cash, real estate or other non-traditional assets requiring protection for a period of time. By working closely together, the best range of skills and experience are utilised to meet the needs of the client.

Find out more about Hawksford escrow services.

View services

Back to top