A takeover offer is often welcomed by shareholders as a catalyst to unlock value. Such offers can take many forms, each subjected to differing conditions. It can be confusing, so here is a short guide to help you navigate those corporate actions. Some nitty-gritties have been omitted in the interest of succinctness and digestibility.
Mandatory Offers
Mandatory offers are mandatory once certain conditions are met and are an offer for all outstanding shares in the target company.
There are 2 conditions which trigger mandatory offers:
- Any person acquires more than 30% voting rights of a company
- Any person who holds between 30% to 50% voting rights and acquires more than 1% of additional voting rights within any 6-month period
The offer price cannot be lower than the highest price paid by the offerer for any shares during the offer period and within the six months leading up to the beginning ...
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