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A common example of this is where a new holding company B is put on top of existing company A. Shareholders give their shares in the old company A to company B in exchange for shares in company B.
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By Practical Law Corporate. This standard document is a short form agreement intended for use in an intra-group share purchase transaction where the consideration is to be satisfied by an issue of shares by the buyer to the seller.
A share for share exchange is where one or more shareholders exchange shares they hold in one company for shares in another company. A common example of this is where a new holding company B is put on top of existing company A.