A reform highly sought in the listed M&A space has recently
been undertaken by SEBI. In its September meeting, SEBI decided to
align the takeover and delisting processes and do away with the
complicated dual procedure that currently exists.
Under the SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, when the mandatory open offer obligation is
triggered, an acquirer is required to make an offer for at least
26%. In cases where the acquirer already holds/acquires 49% or more
of the target company, the additional 26% can take the total
shareholding of the acquirer above the minimum public shareholding
(MPS) threshold. The MPS law requires listed companies to have at
least 25% non-control shareholding.
