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E-library Corporate Law Pre-emption right and exercise conditions

Pre-emption right and exercise conditions

20 Feb 2013

The conditions of exercise of a pre-emption right are those set forth in the applicable pre-emption clause.

Most often, a pre-emption clause imposes on the pre-emption right beneficiary to notify its intention to pre-empt by sending a pre-emption notification, which will constitute an offer to purchase.

The notification formalities prescribed by a pre-emption clause should be strictly complied with.

Indeed, according to French law, in the event that a beneficiary of a pre-emption right does not comply with the notification obligations set forth by the pre-emption clause for the exercise of the pre-emption right, the exercise of such right may be compromised and deemed invalid.

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