Share acquisition-type merger refers to the purpose of obtaining control over a specific joint stock limited company, using cash, stocks , bonds, etc. as consideration , through the exchange to continuously purchase or publicly issue an invitation or tender to all shareholders of the company to purchase the company. The act of issuing all and part of the shares.
Share-acquisition-type mergers are generally implemented through the acquisition of shares through an offer or non-offer. Share control is the most distinctive feature of share-acquisition mergers. Asset/ equity purchase mergers sometimes have issues of share control, but unlike share purchase mergers, they always revolve around the control of shares. Since the shares of a joint stock limited company are publicly issued and can be freely circulated, it is much more convenient for the acquirer to acquire control through the acquisition of shares than through the purchase of assets/equity.
The target company of a share-acquisition merger can be a listed company limited by shares or an unlisted company limited by shares. For the acquisition of listed companies , bidding acquisition and tender offer are applicable, and for non-tradable shares of listed companies or unlisted joint stock limited companies, bidding is applicable.
In addition to the company law and the merger law, a large number of relevant securities laws are also applicable to the share purchase merger. Muscle Co., Ltd., especially a listed company, is involved in the supervision of the securities market. The acquisition of its shares must consider balancing the interests of investors and maintain the normal order of the securities market.