Significant Relaxations For Public M&A And PIPE Transactions

Securities and Exchange Board of India (SEBI) in its meeting today has taken decisions that will make M&A and private investment in public equity (PIPE) transactions easier.

Open Offer Exemption for Distressed Public M&A

Extending the relaxation from making mandatory open offer (MTO) that is presently available only to lender restructuring distressed listed companies (Distressed Companies) through Strategic Debt Restructuring scheme of the Reserve Bank of India (RBI), investors acquiring substantial shares or control of Distressed Companies under any RBI restructuring schemes will not be required to make a MTO subject to certain conditions, including:

• shareholders of the Distressed Company approving such transaction by way of a special resolution; and