Takeovers Panel

UPSTREAM TAKEOVERS

A FURTHER CONSULTATION PAPER ISSUED BY THE TAKEOVERS PANEL

October 2009

• INTRODUCTION
• EXECUTIVE SUMMARY
• STATUS QUO AND PROBLEM
• Status quo
• Nature of the problem
• Practical difficulties
• Takeover proofing
• Uncertainty/lack of transparency
• Upstream takeovers in Australia and other jurisdictions
• Australia
• ASIC policy in respect of upstream acquisitions is applied narrowly
• The 'equal opportunity principle' in Australia underlies the purpose test; the purpose test underlies relief
• Why the requirement that the upstream target be listed?
• Other jurisdictions
• OBJECTIVES OF THE CODE
• PROPOSED OPTIONS IN APRIL 2009 DISCUSSION PAPER
• Option 1: maintain status quo
• Why not the preferred option?
• Option 2a and 2b: (class exemptions, both subject to the purpose test with, respectively, a 50% value test or a 25% value test)
• Why not the preferred option?
• Option 2c (a class exemption subject to purpose test and 50% value test and upstream target in reputable jurisdiction)
• Why not the preferred option?
• Option 3 (a class exemption from the Code, provided upstream target in reputable jurisdiction)
• Why not the preferred option?
• Option 4 (a class exemption, as for option 3, but subject to unacceptable circumstances)
• Why not the preferred option?
• Other proposed options
• PREFERRED OPTION
• Preferred option - case by case exemptions, published guidance/policy
• Key features of preferred option
• Specific requirements of a sell down or follow-on offer
• Analysis of Panel's preferred option
• CONSULTATION
• Problem definition
• Policy objectives
• Assessment of options
• Summary of submitters' preferred options
• Unacceptable circumstances?
• Class exemption subject to purpose test?
• Listed in reputable jurisdiction?
• Panel discretion?
• Other comments
• SUBMISSIONS
• APPENDIX

Download the consultation paper as a PDF file (130 KB)