ASIC today announced amendments to its Policy Statement 159: Takeovers, compulsory acquisitions and substantial holding notices [PS 159] to incorporate its policy on joint takeover bids. Joint bids involve bidders who together have more than 20 per cent voting power in the target company.
ASIC is willing to facilitate joint bids provided that the other shareholders of the target are not disadvantaged by the block created when two or more bidders come together to make the bid. The conditions we will impose on this relief are designed to address the risks that the increased pre-bid stake of the joint bidders could discourage rival bids and any auction for control of the target.
ASIC initially granted relief for a joint bid in 2001. The terms of this relief were announced in Media Release [MR 01/295] ASIC clarifies its policy on joint bids. ASIC has made some technical changes to joint bid relief it has granted since then. Policy Statement 159 reflects ASIC’s current policy on joint bids: see [PS 159.288] to [PS 159.299].