Business, Legal & Accounting Glossary
A type of placing used as a method of financing a takeover in which the purchasing company issues its own shares as payment to the company being bought, with the prearranged agreement that these shares are then placed with investors in exchange for cash.
Vendor placing is a type of placing used as a means of acquiring another company or business.
This is a type of placing used as a means of acquiring another company or business.
For example: If company A wishes to buy a business from Company B, it issues company A shares to company Y as payment alongside a prearranged agreement that those shares are then placed with investors in exchange for cash.
Vendor placings are sometimes utilised as a cheaper alternative to a rights issues; and as such are quite popular with some companies.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Vendor Placing are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th May, 2019 | 0 Views.