Small shareholders rights within a conglomerate

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5928 - Sat, 24 Dec 05 :

If company G has taken over companies R, S T and U. In the cases of T and U company ended with 70% and 85% of the shares respectively.
A large transfer takes place where directors and staff trust funds in Company T agree to transfer their shares into Company G so Company G owns 99.9% of Company T. Likewise for company U it does a deal to acquire the remaining 15% but obtains 100% of the share capital.
Company G then floats but discloses in its prospectus that the purchase sum of the transfer of 29.9% for company T amounted a large sum of share capital.

The 0.1% of shareholders in Company T don't own any part of the floated group but surely have some entitlement to contributions made to the parent company. Is this a correct assumption?
Ie Company G has listed with shareholders being told they have 100% of companies R,S and U but only 99.9% of Company T.
When the interim/final profits are compiled for company G, surely Company R will contribute to them and presumably shareholders are entitled to a piece of the cake. The interesting question is the converse scenario of company R making a loss.

Any corporate lawyer advice would be appreciated.


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