Amendments proposed to takeover regulations by SECP

The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations 2017.

The commission on Friday issued draft amendments seeking public feedback for creating a conducive environment for takeover transactions through the acquisition of shares of listed companies in a fair, transparent and competitive manner.

As part of SECP’s progressive review of regulatory requirements, the subject amendments address key observations emanating from feedback provided by various stakeholders concerning the prevalent takeover regulatory regime.

The subject amendments provide greater flexibility to the minority shareholders of the target company in exercising their rights, whereby an option is being inserted for consideration to such shareholders to be paid either wholly in cash or if consideration is being offered in the form of securities, the same to be accompanied with a wholly cash alternative.