Overview

There are a number of reasons why companies may consider demerging in this current economic climate. There are also several different structures which may be used to achieve the desired result. While the choice of structure will primarily be driven by commercial or corporate tax considerations, implications for employee share schemes participants will need to be addressed.

These can be complex and will depend on the precise structure of the transaction. A number of tax, commercial and practical issues should be considered to ensure that, wherever possible, employees are treated fairly and given the necessary information to enable them to take action to preserve their rights.

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