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Public to private transaction (P2P)
Practical Law UK Glossary 2-107-7568 (Approx. 4 pages)
Glossary
Public to private transaction (P2P)
A bid for a listed company that is generally made by a newly incorporated unlisted company. It is often financed by a mixture of:
- A subscription for shares and/or loan notes by a venture capitalist alongside a management team (often comprised of the target's directors).
- Bank debt by a third-party lender (secured over the bidder's and the target's assets).
This type of transaction is sometimes called a P2P, PTP or take-private because target's shares are taken back into private ownership.