PUT and CALL options over NCI

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Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

PUT and CALL options over NCI

Post by Leo »

Hi guys,

Often in agreements over the minorities interests of a sub between parent A and another company ("company B"), there is PUT and CALL options that exist simultaneously, which means that Parent A can buy the shares of sub from company B when they want, and Company B can sell the shares they hold over sub to Parent A when they want.

Does it mean that whichever party can exercise the option whenever they want? In that case, does it mean that the value of the option put and call is nil, i.e., they cancel with each other?

Thanks
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