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Date
Rule
802.4, 801.2
Staff
Michael Verne
Response/Comments
12/22/2008 1. The formation of Newco is not reportable because all that is being contributed is cash. A and B's acquisition of Newco voting securities is exempt under 802.4. 2. Newco's subsequent acquisition of assets from C is reportable. A is the acquiring person (by holding 51 % of Newco and the controlling equityholder (I'm assuming this is control for HSR purposes) of C is the acquired person.

Question

From: (redacted)
Sent: Monday, December 22, 2008 10:39 AM
To: Verne, B. Michael

Subject: RE: HSR question

Please note that, with respect to the below, my analysis is as follows:

1. Formation of Newco ("N"): A and 8 must file but N need not file per Section 802.41 (ex. 1).

2. Acquisition of assets from C: Both N and C must file. The intraperson exemption (Section 802.30) does not apply since 8 does not control N (only 49% ownership) and, therefore, the fact that 8 and C have the same controlling equityholder is rendered irrelevant in the analysis.

Please let me know if you agree.

Thanks again

------------------------
From: (redacted)
Sent: Friday, December 19,2008 3:38 PM
To: 'Verne, B. Michael' Subject: RE: HSR question

As a follow up, please note that A will own 51 % of Newco and 8 will own 49%.

------------------------
From: (redacted)
Sent: Friday, December 19, 2008 3:07 PM
To: 'Verne, B. Michael' Subject: HSR question

Mr. Verne:

Sorry to bother you again but I have another question.

The question is whether two HSR filings are required or just one.

Here's the scenario. Parties A and 8 will each contribute approx. $100mm to form Newco, and Newco will then spend $200mm+ to acquire assets from C. Note that 8 and C are "sister" entities, each publicly traded, but wI the same controlling equityholder. The two transactions would close substantially concurrently.

Again, thank you in advance.

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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