Dual-listed company
A dual-listed company or DLC is a corporate structure with two registered companies and various shareholders who operate their business together .
In a normal company takeover , one company takes over the shares of another. When a DLC is founded, both companies continue to exist with their respective shareholders. You share the risks and rewards in shares that are laid down in complex contracts. Both companies are usually run by a joint board of directors and a joint management team. A DLC is similar to a joint venture , but both companies share ownership and not just that of a project.
In almost all cases the companies involved are registered in different countries. The DLC status is usually chosen and released again for tax reasons. National pride issues occasionally play a role. If, for example, both parties are too strong for a takeover and therefore do not accept a merger or takeover, enforcement via a DLC construct is sometimes easier because the country with the smaller business does not lose “its” company.
Examples
Current DLCs
Former DLCs
Many DLC companies are listed primarily on the stock exchange of the country in which they were founded and secondarily on the trading platform of one or more other countries (secondary listing) or also within the country (e.g. Hewlett-Packard on the Nasdaq next to the New York Stock Exchange ). Co-listing, on the other hand, is common for companies that started in a small market and want to grow into a larger one.
Occasionally the term dual-listed is used instead of co-listed or cross-listed .
See also
Web links
- Definition of the dual-listing (English)