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ARTICLE · 05 MAY 2017

Role of the Takeovers Panel beyond formal takeovers

DibbsBarker
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This case is a reminder of the role of the Takeovers Panel in other matters that could affect the control of a company.

AustraliaCorporate/Commercial Law
Lis Boyce (Formerly With DibbsBarker)
Lis Boyce (Formerly With DibbsBarker)
Author LinkedIn connections
Services: Corporate & Commercial
Industry Focus: Financial Services, Insurance, Life Sciences & Healthcare, Real Estate & Construction

What you need to know

  • Late last month, the Takeovers Panel considered a Rights Issue undertaken by MEC Resources Limited which serves as a reminder of the Panel's role in considering matters beyond formal takeovers which could affect control in a company.
  • In this recent case, MEC Resources was able to overcome concerns about its Rights Issue by agreeing to make changes to the allocation of shortfall.
  • The Panel's consideration of this case illustrates the importance of evaluating the 'optics' of a proposed transaction that will affect control in a company, regardless of a party's subjective intentions.

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