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: