You are here:
18 November 2021 / news

The use of Dutch pre-wired back-end measures by foreign companies

Pre-wired back-end measures have become a well-established part of the Dutch public takeover practice. Recent precedents have demonstrated that such measures may also be available to listed companies incorporated in other jurisdictions. This trend report observes this interesting development and provides relevant considerations.

trendreport-blue-building

Pre-wired back-end measures in the Netherlands

Takeovers of Dutch listed companies are commonly structured as public bids. It has become market practice in the Netherlands to incorporate certain reorganizations that are implemented following completion of the bid. These ‘back-end measures’ are typically pre-wired, meaning that shareholder approval is obtained prior to completion of the bid from a neutral general meeting.

Recently, we have seen a number of transactions in which foreign companies were redomiciled in the Netherland upon completion of a successful bid. The availability of pre-wired back-end measures can be a relevant consideration in deciding upon such redomiciliation. Such measures may offer a path to 100% ownership even if these measures would not be available in the relevant jurisdiction of origin.

As a redomiciliation to the Netherlands may bring important advantages to international companies, including increased deal certainty, swift and easy post-merger integration and access to other advantages, we expect that more foreign listed companies will look to post-bid redomiciliation to the Netherlands and the implementation of pre-wired back-end measures.

Want to learn more? A trend report in which we share our thoughts on how this development may impact Dutch corporate governance standards, is freely available below.

Your Loyens & Loeff contacts

For more information, please reach out to Bastiaan Cornelisse, Mijke Sinninghe Damsté, Michel van Agt, Menno Baks, Bastiaan Kemp or Philippe Hezer.



The Legal 500 Private Equity Country Comparative Guide 2021

The Legal 500 Private Equity Country Comparative Guide 2021

Loyens & Loeff has contributed to the publication of the 2021 edition. read more
Club Deals article - business meeting

Club deals: the essentials of structuring co-investments

This article discusses what to consider when structuring a co-investment vehicle via a Luxembourg company. read more
Deal-Odin-Automotive

Odin Automotive acquires StreetScooter Engineering

Loyens & Loeff Luxembourg advised Odin Automotive with the acquisition of StreetScooter Engineering (existing IP, production lines, and subsidiaries). read more