1) SEBI amended vide notification dated 30th October 2008 the Takeover Regulations Takeover to, in essence, permit an acquirer, with persons acting in concert with him, to increase his holding by 5% by acquiring additional shares or voting rights upto 5% through open market purchases or pursuant to buyback of shares by the target company. This was following a Press Release discussed here and...
Amendments to Takeover Regulations for creeping acquisitions through market acquisitions/buyback made
SEBI has amended the Takeover Regulations to permit creeping acquisitions vide a notification dated 30th October 2008. I had highlighted here the Press Release that announced the decision of SEBI for this purpose. Following some queries by readers, and also certain points by Mr. Umakanth, more specifically on a concern expressed by me on whether increase in percentage holding arising out of...
Would increase in percentage holding because of buyback trigger the Takeover Regulations?
(Note:- SEBI had issued a press release on October 27, 2008, that I had discussed here, whereby, inter alia, SEBI announced its decision to exempt increase in shareholding on account of buyback upto 5% from applicability of creeping acquisition requirements. I had pointed out that a view is possible to hold that the increase on account of buyback should not trigger the Takeover Regulations and...
Creeping acquisition allowed between 55-75%/increase through buyback exempt upto 5%
Vide a press release dated October 27, 2008, SEBI has announced its decision to allow upto 5% creeping acquisitions between 55%-75% holding. However, the creeping acquisition between this slab can be only by “open market purchases in the normal segment” and not through bulk/block/negotiated deals or through preferential allotment. It is not clear whether a person holding between 50 and 55% and...
Unique avoidance of Takeover Regulations in RIL?
How can Promoters hold shares in a listed company but still ensure that they are not counted as part of Promoters’ holding for purposes such as Takeover Regulations which place various limits over creeping acquisitions, maximum holding, etc.? While there could be many ways, but to talk of something current, if one goes by comments (here) by CNBC’s correspondent Sajeet Manghat regarding RIL , it...
Endemic Delays with Takeover Offers
The Hindu Business Line has published an interesting news story in its edition dated August 24, 2008 about delays in clearing open offers made under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (“Takeover Regulations”). Chronic delays in clearance of open offers are leading to M&A activity in India in the listed space being rendered unpredictable. Worse...
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