TP04/019
The Takeovers Panel has today published its Guidance note on Funding Arrangements for Takeovers. The final version has been significantly amended in response to comments received when the Panel released a draft for public consultation.
The Guidance Note is based on the Panel’s view that a bidder must at all times have, and be able to show that it has, a reasonable basis to believe that it will be able to perform its obligations under the takeover bid.
The Panel has taken the opportunity not only to provide guidance on this issue but also on the disclosure aspects associated with these issues, focussing on the matters which must be disclosed in the bidder’s statement.
The Guidance Note points out that what may be required to satisfy this requirement can, and in most cases will, change throughout the course of a takeover from the time it is announced to the time it becomes unconditional. The Panel notes that this may also require supplementary disclosure to be made by the bidder at critical times; for example when the bid becomes unconditional.
The Panel has also published on its website a paper that sets out its response to the major external comments that the Panel received on the consultation draft.
The Panel would like to thank the Funding Arrangements Sub-Committee (Current Panel members: Kevin McCann; Braddon Jolley; former Panel members: Tro Kortian and Trevor Rowe; and external participants: Rod Halstead and Jason Lee) for their work.
The Funding Arrangements Guidance Note is available at Guidance and the Public Consultation Response Statement is available at Consultation
George Durbridge
Director, Takeovers Panel
Level 47, Nauru House
80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3553
George.durbridge@takeovers.gov.au