Chapter 6: Change of Ownership

STANDARDISATION OF PF2 CONTRACTS PROVISION

SOURCE OF CHANGE WHERE RELEVANT

EXPLANATION OF HOW PROVISION HAS CHANGED THE SoPC4 POSITION

Chapter 6: Change of Ownership

Clause 6

Policy

Chapter 6 now contains required drafting (instead of suitable).

Clause 6.1(b) and (c)

Policy

Provides for additional Contractor notification and disclosure obligations covering details of share sale price and quicker notification provisions.

Section 6.4.2 (Transfer of interests: flexibility and restrictions)

Policy

Recognises that where the public sector has an interest in shares in the Contractor (see Chapter 5) the Change of Ownership restriction will not apply to it.

Clause 6.4(b)(iii) and additional drafting at end of 6.4(b) (Change of Ownership)

Market up-date

Allows transfers within a shareholder's group during the lock-in period. This has for some time been incorporated in PFI contracts.

Clause 6.4(b)(iv) (Change of Ownership)

Policy

Excludes public sector shareholders in the Contractor or Holdco from change of ownership restrictions during the lock-in period.