Divide And Conquer

The Companies (Demerger) (Jersey) Regulations 2018 (the Regulations) come into force on 1 September 2018. The Regulations provide for certain Jersey companies to benefit from a new demerger regime, which will provide further versatility and flexibility to the restructuring and M&A landscape in Jersey.

Practical application of the Regulations have an obvious use in the restructuring and insolvency of Jersey corporate structures, but the demerger regime introduced by the Regulations could also be a very useful tool for investment groups and family offices seeking to segregate assets and spin off investments into other vehicles. Subject to the applicable tax regime, the completion of a demerger under the Regulations may also avoid triggering a tax event that could otherwise arise on conclusion of an alternative transaction.