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Repayment of preference shares/loans

What is Repayment of preference shares/loans?

Jolie Pham avatar
Written by Jolie Pham
Updated over 10 months ago

If the private equity firm provided loans or bought preference shares in the company at the time of investment, then their repayment according to the amortisation schedule represents a decrease of the financial claim of the firm into the company, and hence a divestment.

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