Tag: Takeover Regulations
-
Pyramid Saimira: SEBI Investigation
[Posted by Umakanth Varottil] A couple of days ago, the media carried reports of SEBI having directed one of the promoters to make an open offer to the shareholders of Pyramid Saimira Theatres Limited at a price that is at a substantial premium to current market price. However, just a day later, SEBI put out…
-
Buyback and Takeover Regulations
[Posted by Umakanth Varottil] The issue of whether a buyback of shares will trigger an open offer under the Takeover Regulations has been the subject-matter of extensive discussion on this Blog. In addition, one of our guest contributors, Somasekhar Sundaresan, has a guest column in the Business Standard, which details the issues involved and makes…
-
Recent amendment allowing additional 5% creeping acquisition for 55-75% slab – some issues
[Posted by Jayant Thakur] 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…
-
Amendments to Takeover Regulations for creeping acquisitions through market acquisitions/buyback made
[Posted by Jayant Thakur] 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…
-
Would increase in percentage holding because of buyback trigger the Takeover Regulations?
[Posted by Jayant Thakur] (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…
-
Creeping acquisition allowed between 55-75%/increase through buyback exempt upto 5%
[Posted by Jayant Thakur] 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…
-
Unique avoidance of Takeover Regulations in RIL?
[Posted by Jayant Thakur] 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…
-
Endemic Delays with Takeover Offers
[Posted by Somasekhar Sundaresan] 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…