Definition for : Dividend recapitalisation

A dividend Recapitalisation is a transaction in which the existing Shareholders of a company alter its Financial structure by paying out a dividend that is financed by Debt. Such transactions are frequently done by companies owned by Private equity firms when the LBO is successfull and as an alternative to an IPO or a secondary LBO or a Trade sale.
(See Chapter 45 Mergers and Demergers of the Vernimmen)
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