HONG KONG: SFC proposes Hong Kong takeovers-related rule amendments

Wednesday August 24 2011

The Securities and Futures Commission has begun a one-month consultation to solicit public comments on proposed amendments to the Codes on Takeovers and Mergers and Share Repurchases. Formulated in consultation with the Takeovers Panel for Hong Kong takeovers related rule amendments, the proposals aim at amending the areas as follows:

– Property valuation: Amend the property valuation requirement so that it will only be applicable to related-party transactions or offers which involve special deals that require shareholder approval.

– Confirmations of independence of places: Clarify that it is the responsibility of financial advisers, placing agents and acquirers of the voting rights to confirm the independence of places.

– Timing of payment for acceptances: Change from 10 days to seven business days the prescribed period for payment of acceptances in response to a request by the Federation of Share Registrars Limited to allow share registrars and receiving agents a more manageable timeframe to process payments without compromising the interests of accepting shareholders.Interested parties are invited to submit their comments to the SFC by 26 September 2011. Click on the above link for more details.