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Buy now, pay later: contingent value rights in action

Oil exploration, VAT returns and nuclear power all feature in contingent value agreements

Contingent value rights are used in deals where some future event could significantly increase the value of a takeover target.

UK oil firm Venture Production's 2007 acquisition of Wham Energy included a CVR that paid out if regulatory approvals were granted for Wham to begin exploration in two jurisdictions and oil was found. Both fell through, leaving shareholders empty-handed.

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