Tag and Drag Rights

Contrac­tual co-sale rights and obli­ga­ti­ons that take effect in the event of a sale of blocks of shares. If a share­hol­der wishes to sell his shares, the tag-along right allows the finan­cial inves­tor to sell his shares to the buyer under the same condi­ti­ons. If the acqui­rer does not wish to acquire the addi­tio­nal shares, the sellers will receive a pro rata share. Conver­sely, the selling finan­cial inves­tor can demand that the remai­ning share­hol­ders sell their shares to an inte­res­ted buyer on the same terms (drag-along right). This allows the finan­cial inves­tor to offer a larger package overall.