Takeovers Panel Calls for Submissions on Upstream Takeovers Policy

 

23 October 2009

The Takeovers Panel is inviting submissions on a second discussion paper it has published on upstream takeovers.

An upstream takeover is a takeover of an entity that is a controlling shareholder of a New Zealand Code company.

The issue of upstream takeovers was highlighted in 2008 by BG Group plc's proposed upstream takeover in Australia of Origin Energy Limited, which had a majority shareholding in Contact Energy Limited, a New Zealand Code company.

The Panel wishes to adopt a clear and transparent policy on dealing with upstream takeovers so that it can provide clarity to the market on the application of the Code when faced with these takeovers.

The Panel issued its first upstream takeovers consultation paper in April 2009. That paper:

  • discussed the Panel's current approach to granting exemptions from the Code in respect of upstream takeovers;
  • explained the problems that the Panel faced with that approach;
  • discussed and compared how other jurisdictions deal with upstream takeovers; and
  • set out a range of potential options for addressing the problems.

After considering the submissions received in response to the April 2009 consultation paper, the Panel has now identified a preferred option, which is different from any of the options that were proposed in the April 2009 paper.

The Panel is seeking submissions on its preferred option to assist it to finalise its view.

The consultation paper is available on the Panel's website (www.takeovers.govt.nz).

Closing date for submissions is 27 November 2009.