• PAK SEC proposed amendments to the Listed companies (substantial acquisition of voting shares and takeovers) regulations, to establish a fair, transparent, and competitive framework for takeover transactions involving shares of listed companies.
• Document dated 18 August 2023, received from PAK SEC 21 August, summarized 22 August.

Amendments

• Offer increased flexibility to minority shareholders of target company, providing them with choice of receiving their consideration in cash or securities with a cash alternative.
• The criteria for the securities that can be offered as consideration are being refined.
• Only shares of listed companies, listed debt instruments, and government securities with a remaining maturity of up to 364 days can be offered during public offers.
• There are improvements in method of valuing the securities offered as consideration.
• Only highly liquid securities will be accepted as collateral by the acquirer's manager.
• Amendments also aim to define terms previously used in the regulations but not yet defined, enhancing clarity and consistent interpretation throughout the regulations.

Effectiveness

• The consultation is open for 14 days, i.e. 31 August 2023.