[F1Protection of minority shareholders, the mandatory takeover bid and the equitable priceU.K.
Textual Amendments
F1Sch. 1C inserted (31.12.2020) by The Takeovers (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/217), reg. 1, Sch.; 2020 c. 1, Sch. 5 para. 1(1)
7.(1)Rules must ensure that a person (“P”) is required to make a takeover bid (“a mandatory takeover bid”) where—U.K.
(a)P, or any person acting in concert with P, has acquired securities in a company, and
(b)the acquired securities, when added to any existing securities held by P or by persons acting in concert with P, directly or indirectly give P control of that company.
(2)Rules must ensure that the mandatory takeover bid must be addressed at the earliest opportunity to all of the holders of those securities for all their holdings at the equitable price.
(3)Rules must ensure that where control has been acquired following a voluntary takeover bid to all the holders of securities for all their holdings, the obligation referred to in sub-paragraph (1) to make a mandatory takeover bid no longer applies.
8.(1)For the purposes of paragraph 7, “the equitable price” is the highest price paid for the same securities by the offeror, or by persons acting in concert with the offeror, over a period, determined by rules, of not less than 6 and not more than 12 months before the mandatory takeover bid is announced.U.K.
(2)Rules must ensure that if, after the mandatory takeover bid has been made public and before the offer closes for acceptance, the offeror or any person acting in concert with the offeror purchases securities at a price higher than the offer price, the offeror must increase the offer consideration so that it is not less than the highest price paid for the securities so acquired.
(3)Rules may confer power on the Panel to adjust the equitable price in circumstances and in accordance with criteria that are clearly determined.
(4)Rules must ensure that any decision by the Panel to adjust the equitable price must be substantiated and made public.
9.(1)Rules must ensure that the offeror may offer by way of consideration for the securities which are the subject of the mandatory takeover bid—U.K.
(a)securities,
(b)cash, or
(c)a combination of both.
(2)Rules must ensure that cash must be offered—
(a)as an alternative where the consideration offered does not consist of liquid securities admitted to trading on a UK regulated market, and
(b)at least as an alternative where the securities purchased for cash over a relevant period by the offeror or by persons acting in concert with the offeror, taken together, carry 5% or more of the voting rights in the offeree company.
(3)“A relevant period” is a period—
(a)beginning at the same time as the period determined in accordance with paragraph 8(1), and
(b)ending when the offer closes for acceptance.
(4)Rules may require that cash must be offered, at least as an alternative, in all cases.
10.U.K.Any rules that make provision to protect the interests of the holders of securities that goes beyond the provision referred to in paragraphs 7 to 9 must not hinder the normal course of a takeover bid.]