AUSTRALIA: ASIC Updates Takeovers Guidance on Minimum Bid Price Rule

Thursday December 8 2016

On 7th December 2016, the Australian Securities & Investments Commission (ASIC) reissued its regulatory guide on takeover bids to incorporate updated guidance on the minimum bid price rule in s621(3) of the Corporations Act.

The rewrite of the previous guidance on the rule is designed to make it clearer and easier to use. There are no significant changes to the underlying policy.
Regulatory Guide 9 Takeover bids (RG 9) comprises the majority of relevant policies on takeover bids. The incorporation of the policy on the minimum bid price rule into RG 9 further consolidates ASIC’s policies on takeovers to make guidance more accessible.

RG9 is for listed and unlisted entities, their advisers, and investors involved in a takeover bid. It:

• discusses ASIC’s regulatory role in relation to takeover bids and how they interpret and administer the requirements of the takeover provisions in Ch 6 of the Corporations Act 2001, and
• explains how ASIC exercise their discretionary powers in relation to takeover bids, including the power to exempt from, or modify, the takeover provisions.

RG 9 also includes updated references to the new legislative instruments on takeovers which were released in December 2015 and other minor updates.

Click on the link above for further details.