Contingent Value Rights (CVR)
A Contingent Value Right (CVR) is a contractual instrument issued in some mergers or acquisitions that provides for future payments to holders only if predefined post‑closing milestones or events occur. The payout amount and timing are defined in the merger agreement and may be settled in cash, stock, or a mix.
Example: In the merger, a CVR was issued to target shareholders; they would receive a cash payout if regulatory approval was obtained within 18 months, otherwise the CVR would expire.
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