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16-423MR ASIC updates takeovers guidance on minimum bid price rule
ASIC has today reissued its regulatory guide on takeover bids to incorporate updated guidance on the minimum bid price rule in s621(3) of the Corporations Act.
The rewrite of our previous guidance on the rule is designed to make it clearer and easier to use. There are no significant changes to the underlying policy.
Regulatory Guide 9 Takeover bids (RG 9) contains the bulk of our policies on takeover bids. The incorporation of our policy on the minimum bid price rule into RG 9 further consolidates our policies on takeovers to make our guidance more accessible.
'The minimum bid price rule plays a key role in takeovers regulation by ensuring that shareholders have a reasonable and equal opportunity to participate in benefits arising from a takeover bid. Ensuring our guidance is clearer and more accessible is one way in which we can communicate the importance of this rule to the market', Commissioner John Price said.
RG 9 also includes updated references to the new legislative instruments on takeovers which were released in December 2015 and other minor updates.
In June 2013, ASIC released consolidated guidance on takeovers, which included RG 9. RG 9 consolidated a number of different regulatory guides which were then withdrawn. Our policy on the minimum bid price rule in Regulatory Guide 163 Minimum bid price principle: s621(3) was not consolidated at the time.
In December 2015, ASIC re-made six legislative instruments on takeovers and schemes of arrangement which were due to sunset, including our relief affecting the minimum bid price rule. We consulted publicly on these revisions in Consultation Paper 234 Remaking ASIC class orders on takeovers and schemes of arrangement (refer: 15-375MR).