Hong Kong – SFC Amends Codes on Mergers, Takeovers

Hong Kong – SFC Amends Codes on Mergers, Takeovers

On 13 July 2018, HK SFC, gazetted amendments to codes on mergers, takeovers.

  • Released consultation conclusions and respondents were generally supportive of
    proposals, majority of which were adopted with some modifications from feedback.
  • The amended codes which were gazetted on 13 July, will be effective immediately.

 

Key Proposals from Original Consultation:

  • Increase voting approval threshold for whitewash waivers to 75% of shareholders.
  • Panel to require compensation be paid to shareholders who suffered from breach.
  • Clarify the obligations of persons dealing with the Takeovers Executive, Takeovers
    Panel and the Takeovers Appeal Committee in all Codes transactions, cooperation.
  • Also sets out proposed amendments to the term "associate" as well as approval
    of delistings in jurisdictions which do not afford the compulsory acquisition rights.