Client wishes to acquire 75% of share capital of target company. At present issued share capital in that company is 3 ordinary £ 1 shares. Easiest way would seem to be company issue say 97 bonus shares to rank parri passu with existing shares and client acquires 75 of total issued share capital.
Query is what are the tax consequences on both the individuals in receipt of the bonus shares and the company.
Alternatively would it be better to hive the business down into newco by say issuing 33 and a third shares in newco for every one share in existing company and acquire 75 % of the shares in newco.
Comments appreciated !