The Takeovers Panel is considering whether to “conduct proceedings” and investigate allegations against Spanish-owned CIMIC following a request from Sedgman, which alleged earlier this month on 20 January that the construction group breached the Corporations Act.
After launching a takeover bid to buy Sedgman for $1.07 per share in cash on January 13, it is alleged CIMIC did not provide enough information on its intention to reduce the value of its $1.07 offer by the value of dividends and attached franking credits “as reasonably assessed by it” when it released its initial bidder’s statement.
A decision on whether to conduct proceedings is usually made within a week after an application is received. As of yet, no decision has been made.
A seemingly harmless sentence from the government proposing to give ASIC power to “approve changes of licensee control” should not be waived through without questions being asked by the financial services industry.
There are potential risks in giving ASIC the power to approve mergers and takeovers, including the additional regulatory uncertainty to financial services M&A activity. Further, the power goes against the role of ASIC to maintain, facilitate and improve the performance of the financial system.
The Minister for Small Business and Assistant Treasurer has made a media release in relation to the draft regulations that provide additional detail to Australia’s new crowd‑sourced equity funding (CSEF) framework.
Submissions on the draft regulations will be accepted until 29 January 2016, and can be made via the Treasury website. Please click here to access the Treasury website.
The text of the Corporations Amendment (Crowd-Sourced Funding) Bill currently being considered by Parliament is available on the Australian Parliament website. Please click here to access the text.
For the full media release, please click here.
The Court’s Decision
Trilogy’s claim was upheld and Wigney J found that the following contraventions of the Corporations Act were made by the directors:
For the full decision, please click here.
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