In this update, we cover the Takeovers Panel's recent
consultation papers on changes to Guidance Note 1: Unacceptable
Circumstances (GN 1) and Guidance Note 17: Rights
Issues (GN 17). We also look at the revised guidance note on
Continuous Disclosure released by the ASX this month. These
revisions will impact all entities listed on the ASX.
Takeovers Panel seeks to clarify truth in takeovers
GN 1 seeks to clarify uncertainty about how long a bidder must
wait after declaring an offer price final, before it can make a
revised bid or propose a scheme at an increased consideration.
Read more...
Revised draft guidance on rights issues
The proposed amendments to GN17 look to provide clarity on
mitigating potential control effects on listed companies and the
operation of shortfall facilities. They also suggest that a rights
issue will generally be acceptable if there is a clear need for
funds, provided an appropriate dispersion strategy has been
implemented.
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