Carey Olsen in Guernsey and Linklaters in London have successfully completed a scheme of arrangement in respect of European Capital Limited ('ECAS').

ECAS is a Guernsey incorporated authorised closed-ended investment company and the scheme of arrangement was completed under the Companies (Guernsey) Law, 2008 (as amended).

The scheme of arrangement permitted American Capital Ltd (the holder of approximately 67% of the shares in ECAS) to acquire the remaining approximately 33% of the shares in ECAS from ECAS' minority shareholders pursuant to an order of the Royal Court of Guernsey.

ECAS was advised by Partner Tom Carey and assisted by Senior Associates Adrian Sarchet and Tim Corfield of Carey Olsen and by Partner Matthew Middleditch and Managing Associate Alexandra Beidas and Associate Chloe Harbord of Linklaters.

Partner, Tom Carey, described the successful completion of the deal as a 'significant step' in the development of Guernsey's takeover practice and jurisprudence, adding: "while not the first scheme of arrangement to pass the doors of the Court, it was to our knowledge, the first time the Court:

  1. confirmed its approach to the management of complex takeover schemes; and
  2. was invited to consider and determine a number of difficult technical issues which arise on takeover schemes.

"As a result, the practice knowledge and precedents that have been developed will benefit many of our other clients in the future."

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