The Companies (Demerger) (Jersey) Regulations 2018 will take effect on 1 September 2018 and will provide a more flexible regime, including a quicker and more cost effective and flexible route to demergers than the use of schemes of arrangement or other more complex reorganisations.
But Mr Amy says that the opportunities created by the amendments potentially extend to restructuring and other types of work, as well as M&A work: ‘They offer welcome additional flexibility, particularly in respect of large, complex or multi-national businesses with diverse assets which want to hive off or otherwise dispose of assets. We have already seen significant interest in this new regime and I am sure the intermediaries we work with around the world will find many other uses for this innovative product.
‘There are signs which point towards an increase in corporate restructuring activity and we anticipate that the demerger regulations will support interest in Jersey as a venue for that kind of activity – at the same time, with companies seeking to support growth through M&A activity we expect this change to be of interest in that respect as well.’
