AUSTRALIA: ASIC Provides Updated Guidance for Australia Downstream Share Acquisitions

Wednesday May 16 2012

ASIC today released updated guidance on a key part of Australia’s takeover regulation. The guidance is set out in Regulatory Guide 71 Australia Downstream acquisitions (RG 71).

The updates to RG 71 follow a public consultation process (refer: 11–251AD and Consultation Paper 170 Downstream acquisitions: update to RG 71 (CP 170)). As foreshadowed through consultation, the update takes into account developments in the law since RG 71 was first published, including amendments to the exception for downstream acquisitions in item 14, the extension of the takeovers regime in Chapter 6 to listed managed investment schemes and developments in recent Takeovers Panel matters.

The updated guide provides entities and their advisers with ASIC’s views on how the downstream acquisition exemption in item 14 applies and their approach on relief applications, including when we may grant relief to permit a downstream acquisition that does not fall within the item 14 exemption.

Entities that propose making a downstream acquisition that is not exempt under item 14 are encouraged to approach ASIC for relief well in advance of the time the upstream acquisition is to take place.

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