The Reverse Takeover: A BVI Perspective

A reverse takeover (RTO) is a transaction by which a publicly traded company acquires all the shares of a target company that has an operating business, but whose shares are privately held. By virtue of the RTO, shareholders of the target company exchange their shares for shares of the listed company, which in turn holds the shares of the target company owning the operating business. An RTO is generally seen as an alternative to the traditional IPO and is popular in some jurisdictions, including the USA and Canada. One of the most well-known RTO transactions involved Burger King, which was privately held prior to its RTO in 2012, resulting in its relisting on the New York Stock Exchange.