Calculating the Specified Percentage for a Partial Takeover Offer

Published 1 May 2010

The Panel is concerned that market participants may be encountering difficulty with the application of rule 9 of the Code.

A partial offer under the Code must be made for a “specified percentage” of target company voting securities not already held or controlled by the offeror (rule 9).

There have been quite a number of instances where the specified percentage was misstated by the offeror in its takeover documentation.

To assist market participants, the Panel has prepared the following example calculation of a specified percentage for a hypothetical partial offer, for reference:

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