Scope of Assignment
An international banking group wanted to sell a credit card related business operating across four countries as one entity. The card businesses operated as an integrated part of the banking group in each country subject to different legal, labour, tax and regulatory regulations.
Acting on behalf of the seller, the transaction was structured so that the four businesses could be sold as one and treated as a sale of business as opposed to an asset sale. This structure avoided a long, drawn out sales process while ensuring compliance with all local legal, labour, tax and regulatory regulations. The transaction took four months of negotiations and involved the signing of 18 agreements including a two year transitional services agreement.
The benefit of the sale was immediate in terms of a substantial gain plus the client managed to dispose of a non-core business. This freed up management resources and provided funds to be deployed to more profitable businesses.