Public to private transaction (PTPs)

A bid for a listed company that is generally made by a newly incorporated unlisted company. It is often financed by a mixture of:

  • Share capital and/or loan notes (www.practicallaw.com/A36369) from a venture capitalist and a management team (often comprised of the target's directors).

  • Bank debt by a third party lender (secured over the bidder's and the target's assets).

These transactions are sometimes called PTPs, P2Ps or take privates because the target's assets are taken back into private ownership.

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