Amid all the buzz around listed companies and growing frenzy in
the capital market, there is a surge in M&A activities in the
listed space in India, where open offer process is becoming the
nucleus of such transactions. In this article, we intend to
highlight some practical nuances of managing an open offer process
with a specific focus on compliance with disclosure-related
requirements.
Open offer - Triggering of
compliances:
A takeover of a listed company is governed by the provisions of
the Securities and Exchange Board of India (Substantial Acquisition
of Shares and Takeover) Regulations, 2011, as amended
("SEBI SAST Regulations").
Under the SEBI SAST Regulations, an open offer is triggered when
an acquirer, acting individually or along with persons acting in
concert with the acquirer ("PACs"),
acquires or agrees to acquire, directly or indirectly: (a) 25% or
more shares or voting rights in; or (b) control of, a target listed
company.
