Dual Listing

Question 1

What is a dual listed company (DLC)

Answer 1

1. Two corporations function as a single operating business through a legal equalisation agreement.
2. They share a single board of directors and have an integrated management structure
3. BUT, they retain separate legal identities and stock exchange listings
4. They are all cross-border and have tax advantages

Question 2

Explain the concept of “equalisation agreement” when it comes to dual listing

Answer 2

They are legal contracts that specify how ownership of the corporation is shared and set up

Ensures equal treatment of both companies’ shareholders in voting and cash flow rights

Question 3

What’s the main advantage of a dual-listed structure?

Answer 3

Tax - DLC deals don’t have a capital gains tax