Definition for : Contribution of shares

An investor (a legal entity or an individual) exchanges its shares of company B for the shares of company A. In this case, companies A and B continue to exist, with B becoming a Subsidiary of A and the Shareholders of B becoming Shareholders of A. Contribution of shares is an All-share transaction. For listed companies (see Listed security), contribution of shares most commonly takes place in the form of a Share exchange offer.

(See Chapter 44 Initial public offerings (IPOs) of the Vernimmen)

To know more about it, look at what we have already written on this subject