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Urgent


07 January 2012
dear all

Kindly advise me on the following query

P ( a public ltd co.) wants to invest in the equity shares of L ( a pvt ltd co.) . Both are group companies. L has almost 17% equity shares lying unissued. Now the management has decided to acquire shares in L ltd. so what percentage of shares should P acquire and what factors should be kept in mind while deciding the consideration of Shares.( Both are unlisted companies)

07 January 2012 If the shares acquired and to be acquired is more than 50%, then l will become the subsidiary of P.

I guess there is no restriction as to investment.

other views are solicited..



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