Wednesday 28 March 2007 LAWFUEL – Australia Law – The Australian Securities and Investments Commission (ASIC) today released a policy proposal paper (PPP) on relief from the requirement to prepare a prospectus or Product Disclosure Statement (PDS) when securities are offered as consideration under a foreign regulated takeover. The requirement to prepare a prospectus or PDS may deter a bidder under a foreign regulated takeover from offering securities to Australian members of a foreign target as an alternative to cash.
This means that Australian members may be deprived of the ability to receive their consideration in the form of securities. Granting relief from the requirement to prepare a prospectus or PDS could allow Australian members to receive the same offer as their foreign counterparts. The proposed relief is subject to conditions, including that Australian residents hold no more than 10% of the target securities, and the target securities are quoted on an approved foreign market.
The PPP also proposes licensing relief for the provision of general advice that is contained in a bid document for a foreign regulated takeover. Comments on the PPP are due by Friday 4 May 2007 and should be sent to: Anthony Graham Senior Lawyer Regulatory Policy Australian Securities & Investments Commission GPO Box 9827 Melbourne VIC 3001 Fax: 03 9280 3306 Email: anthony.graham@asic.gov.au Copies of the PPP are available from the ASIC website at: Alternatively, you can call the ASIC Infoline on 1300 300 630.
For further information contact: Michael van Maanen ASIC Media Unit Telephone: (02) 9911 2658 Mobile: 0412 500 351
