Advising on the Transfer of a 50% Equity Interest in an Agricultural Company

We provided legal counsel to the founder of a long-established agricultural company in connection with the transfer of his 50% equity interest to an investor who already held the remaining 50% equity interest in the company. The transaction resulted in a complete change in the company’s ownership structure.

A key aspect of the project was designing a legally and tax-efficient transaction structure and preparing the full set of transaction documents. The transfer was implemented through a combination of a share deal and an asset deal in order to address the commercial, tax, and financing aspects of the transaction.

Our engagement also included assistance with securing bank financing for the acquisition, including the structuring of financial assistance provided by the company in favour of the purchaser through the creation of security interests over the company’s movable and immovable assets. The transaction structure was carefully designed to ensure compliance with the rules on capital maintenance and the prohibition of the return of contributions under Section 67j of the Slovak Commercial Code.

The transaction value amounted to EUR 2.5 million.