us-ftc-hsr-informal-interpretations-59dbf90509849ca71d8d8c2e6763ae8b•2202002 Informal Interpretation
2202002 Informal Interpretation
us-ftc-hsr-informal-interpretations-59dbf90509849ca71d8d8c2e6763ae8b2202002 Informal InterpretationGuidance
It appears that B and D each have the right to 75% and 25% of the profits / assets upon dissolution of C, respectively. If that is indeed the case, then B is the UPE of C and the acquired person, while D is only a minority interest holder and is not an acquired person. It also appears that the two acquisitions you describe represent two steps of a transaction in which A seeks to acquire all of the non-corporate interests of C from their different holders. In that case, the value of the interests that A would hold as a result of the transaction would be $200 million.
Question
From: Musick, Vesselina <vmusick@ftc.gov>
Sent: Friday, February 4, 2022 4:04:33 PM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Question about multiple transactions
[Redacted]
It appears that B and D each have the right to 75% and 25% of the profits / assets upon dissolution of C, respectively. If that is indeed the case, then B is the UPE of C and the acquired person, while D is only a minority interest holder and is not an acquired person. It also appears that the two acquisitions you describe represent two steps of a transaction in which A seeks to acquire all of the non-corporate interests of C from their different holders. In that case, the value of the interests that A would hold as a result of the transaction would be $200 million.
Kind regards.
Vesselina Musick
From: [Redacted]
Sent: Friday, February 4, 2022 9:56:06 AM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Subject: Question about multiple transactions
Good morning.
I anticipate making a filing soon and had a question about how to address this situation.
- Company A entered into a Membership Interest Purchase Agreement (the “MIPA”) with Company B to acquire 75% of the non-corporate interests of Company C for approximately $150 million.
- At the same time, Company A entered into a Share Purchase Agreement (the “SPA”) with Company D by which it will acquire the remaining 25% of the non-corporate interests of Company C for approximately $50 million.
In submitting the filing, I believe it is appropriate to (1) identify both Company B and Company D as acquired persons in Item 2(a) while noting Company D is non-reportable since the SPA is below the size of transaction threshold, (2) report the value of interests to be held as a result of the acquisition in Item 2(d)(vii) as $150 million, and (3) pay a filing fee of $45,000 since the size of the reportable transaction would be $150 million. The parties would also describe the SPA in the transaction description and submit a copy of that agreement so you would have a complete picture. Is that the appropriate way to address this situation?
Sheinberg, Samuel I. From: HSRHelp Sent: Friday, February 4, 2022 4:05 PM To: Subject: Walsh, Kathryn E.; Berg, Karen E.; Shaffer, Kristin; Sheinberg, Samuel I.; Six, Anne; Whitehead, Nora FW: Question about multiple transactions From: Musick, Vesselina <vmusick@ftc.gov> Sent: Friday, February 4, 2022 4:04:33 PM (UTC-05:00) Eastern Time (US & Canada) To: Cc: e p < e p c.gov> Subject: RE: Question about multiple transactions It appears that Band Deach have the right to 75% and 25% of the profits/ assets upon dissolution of C, respectively. If that is indeed the case, then Bis the UPE of C and the acquired person, while Dis only a minority interest holder and is not an acquired person. It also appears that the two acquisitions you describe represent two steps of a transaction in which A seeks to acquire all of the non-corporate interests of C from their different holders. In that case, the value of the interests that A would hold as a result of the transaction would be $200 million. Kind regards. Vesselina Musick Attorney I Federal Trade Commission I Premerger Notification Office Direct +1 202.326.2307 j Email: vmusick@ftc.gov I www.ftc.gov From: Sent: n ay, e ruary , -05:00) Eastern Time (US & Canada) To: HSRHelp <HSRHelp@ftc.gov> Subject: Question about multiple transactions Good morning. I anticipate making a filing soon and had a question about how to address this situation. • Company A entered into a Membership Interest Purchase Agreement (the "MIPA") with Company Bto acquire 75% of the non-corporate interests of Company C for approximately $150 million. • At the same time, Company A entered into a Share Purchase Agreement (the "SPA") with Company Dby which it will acquire the remaining 25% of the non-corporate interests of Company C for approximately $50 million. In submitting the filing, I believe it is appropriate to (1) identify both Company Band Company Das acquired persons in Item 2(a) while noting Company Dis non-reportable since the SPA is below the size of transaction threshold, (2) report the value of interests to be held as a result of the acquisition in Item 2(d)(vii) as $150 million, and (3) pay a filing fee of $45,000 since the size of the reportable transaction would be $150 million. The parties would also describe the SPA in the transaction description and submit a copy of that agreement so you would have a complete picture. Is that the appropriate way to address this situation? Thanks, 1
Wondering how this text applies to your situation?
Free consultation, no commitment
Describe your situation. Our team will contact you by email about your consultation.
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.