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Repayment of preference shares/loans
Repayment of preference shares/loans

What is Repayment of preference shares/loans?

Jolie Pham avatar
Written by Jolie Pham
Updated over a week 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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