A large PE fund was purchasing an Irish incorporated entity as part of a larger staged investment (in excess of EUR 200m).

It was proposed that the transfer would be done by way of share subscription and buy-back, rather than by way of share transfer.  The risk to be insured was whether the subscription and buy-back could be subject to stamp duty at 1%.  If the stamp duty was applicable it would have a direct impact on the amount of the investment, which would make the overall proposition for the seller less attractive.

The buyer secured a policy that provided coverage for the position that there would be no Irish stamp duty on the transaction.  As a consequence, the full investment could go ahead as planned.