ARGENTINA: Mandatory Takeover Bid Threshold Increased

The Comision Nacional de Valores (CNV) has raised the percentage giving rise to a mandatory partial takeover bid from 15% to 35%.

Under RG No. 689, a partial takeover bid is required when it is intended to achieve a stake equal to or greater than 35% of the voting capital stock and / or the company’s votes. The offer must be made for a number of securities that allows the acquirer to obtain at least 50% of the voting capital of the target company. The exception to the partial takeover bid is maintained in cases where the acquisition of the significant interest does not entail the acquisition of control of the company.

The obligation to launch a mandatory takeover bid for the total will be given when a share of more than 50% of the voting capital and / or the votes of the company is sought. The offer must be made on a number of securities that enable the acquirer to reach 100% of the voting capital of the affected company.

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