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IR 07-12 ASIC proposes prospectus relief for foreign scrip takeovers
ASIC today released a policy proposal paper (PPP) on relief from the requirement to prepare a prospectus or Product Disclosure Statement (PDS) when securities are offered as consideration under a foreign regulated takeover.
The requirement to prepare a prospectus or PDS may deter a bidder under a foreign regulated takeover from offering securities to Australian members of a foreign target as an alternative to cash. This means that Australian members may be deprived of the ability to receive their consideration in the form of securities.
Granting relief from the requirement to prepare a prospectus or PDS could allow Australian members to receive the same offer as their foreign counterparts.
The proposed relief is subject to conditions, including that Australian residents hold no more than 10% of the target securities, and the target securities are quoted on an approved foreign market.
The PPP also proposes licensing relief for the provision of general advice that is contained in a bid document for a foreign regulated takeover.
Comments on the PPP are due by Friday 4 May 2007 and should be sent to:
Australian Securities & Investments Commission
GPO Box 9827
Melbourne VIC 3001
Fax: 03 9280 3306
Alternatively, you can call the ASIC Infoline on 1300 300 630.