Acquiring up to 20% of the shares of a public company requires careful planning.
Stakebuilding investors in Canadian public companies should be alert to two key ownership thresholds: 10% and 20%.
While the 10% threshold introduces disclosure and insider obligations, crossing 20% generally moves an investor into take‑over bid and control person territory.
For more information about what it takes to cross the 10% threshold, the implications of doing so, determining your securityholding percentage (including deemed ownership), and more, see our blog about crossing the 10% threshold.
The Importance of 20%: Take-over Bid Territory
A take-over bid is defined as any offer by an investor to acquire outstanding voting or equity securities of a class of a reporting issuer made to one or more persons in Canada that would result in the investor, together with any of its joint actors, having beneficial ownership of, or control or direction over, 20% or more of the outstanding securities of
