We’ve posted before about Cayman Appraisal actions. The Cayman Islands remain an active jurisdiction for appraisal actions; and with appraisal actions comes valuation questions. Cayman firm Collas Crill has issued an explanatory note on valuation methods in the Cayman Islands, discussing the discounted cash flow (DCF) and market-based approaches taken by Cayman courts. As others have noted, Cayman courts often look to Delaware court decisions for persuasive authority when dealing with their own appraisal disputes, and this note suggest this may continue with Cayman courts considering “Dell compliance” – examining the merger process when determining the appropriate valuation method.
*We thank Rocco Cecere of Collas Crill, author of this note, for bringing it to our attention.
** Lowenstein Sandler LLP does not practice in the Cayman Islands.