Takeovers Panel
Rule 16(b) Class Exemption

A Consultation Paper Issued by the Takeovers Panel


August 2009
INTRODUCTION
EXECUTIVE SUMMARY
IDENTIFICATION OF THE PROBLEM
Status Quo
Examples of Rule 16(b) exemptions granted by the Panel
The Problem
POLICY OBJECTIVES
OPTIONS AND ANALYSIS
Introduction
Option 1: Maintain status quo
Analysis of Option 1
Option 2: Amend rule 16(b) of Takeovers Code to allow disclosure of maxima
Analysis of Option 2
Option 3: Class exemption
Analysis of Option 3
Option 4: Class exemption plus Panel approval of transaction
Analysis of Option 4
CONCLUSION/PREFERRED OPTION
PART II - THE FORM OF A RULE 16(B) CLASS EXEMPTION
Scope of class exemption
What classes of transactions should a class exemption from rule 16(b) cover?
Should the class exemption be limited to a single allottee per exempted transaction?
Should the class exemption be limited to transactions of short duration?
Review of standard conditions of exemption
Issue 1: No other means increase condition
Issue 2: No increase above permitted maximum
Issue 3: 'Potential Maxima' not always 'Likely Maxima'
Issue 4: Changes in control of exempted corporates
Proposed draft class exemption
Appendix A
Appendix B