Overview

Share purchase of 80% of a UK based water purification company with an option to purchase the remaining 20% by a South African publicly listed investment company.

Case Study

The team at Ison Harrison acted for a South African listed investment company on its first UK acquisition, advising on the purchase of a UK-based water purification business as part of the client’s strategy to expand its UK presence.

Liaising with the client across different time zones, the team conducted extensive due diligence on the Target company, highlighting key risks to the client around commercial, employment and corporate risks. These risks were communicated to the client in a clear and concise manner explaining key differences between South African and UK legislation whilst providing legal and commercial solutions to mitigate the identified risks.

The transaction involved negotiating a share purchase agreement for 80% of the Target including the option to purchase the remaining 20% should certain conditions be met, as well as a shareholder’s agreement to manage the Target whilst there are multiple shareholders.

The transaction documentation had to be drafted to include a mechanism to obtain South African Reserve Bank approval and contained a mechanism to retain a portion of the sale proceeds by the Client to resolve any potential warranty claims that may arise in the first year.

The transaction was completed in October 2024 following the approval of the South African Reserve Bank and Ison Harrison received a 5* feedback praising their professionalism throughout the transaction

Contact Ison Harrison

If you would like further information about how the team at Ison Harrison can assist with inward investment into the United Kingdom or overseas mergers and acquisitions please contact Richard Coulthard.