Monday January 22 2018
News Source: Global Disclosures
Focus: Takeover and Acquisition
Type: General
Country: Hong Kong
The Hong Kong Securities and Futures Commission (SFC) issued a public consultation paper on 19 January 2018 regarding proposed amendments to the Codes on Takeovers and Mergers and Share Buy-backs. The consultation period will last for three months.
The consultation paper contains six parts:
- Part 1 proposes introducing provisions clarifying the obligation of parties when dealing with the Executive;
- Part 2 proposes amending the definition of “associate” to prevent confusion between this and the definition of “acting in concert”;
- Part 3 proposes to raise the voting approval threshold for whitewash waivers from a simple majority of independent votes to 75%;
- Part 4 aims to provide a level playing field for companies incorporated in jurisdictions which have no compulsory acquisition rights (such as the Mainland) that seek to delist in Hong Kong through a general offer;
- Part 5 proposes clarifying the scope of disclosure of holdings and dealings in relevant securities, particularly in relation to a securities exchange offer. It is also proposed to relax some requirements including the timing of dealing disclosures; and
- Part 6 proposes further miscellaneous amendments to the Code.
Interested parties are invited to submit their comments to the SFC by 19 April 2018 via the SFC website, by e-mail to takeoverscode_review@sfc.hk, by post or by fax to 2810 5385.
Click on the link above for the consultation.