DENMARK: New Denmark takeover rules to enter into effect in July 2014

Thursday April 24 2014

The Danish Parliament has adopted amendments to the Securities Trading Act on Denmark takeover rules, which will enter into effect on 1 July 2014.

Under the revised rules, a mandatory bid will be required on reaching one-third of the voting rights of a company (instead of the existing 50%). The exemption from making a mandatory bid where the reaching of the bid threshold is due to a previous voluntary offer has been amended to require the offeror to obtain more than half of the voting rights in the company as a result of the voluntary bid in order to be exempt from the obligation to make a mandatory bid.

Provisions on equal treatment of shareholders have also been amended.

A new Executive Order on takeover bids is currently being consulted on and is expected to enter into effect in July 2014. Click here for the consultation (only in Danish).

Click on the above link for the approved amendments to the Securities Trading Act (only available in Danish).