CORPORATIONS ACT 2001

CHAPTER 6 - TAKEOVERS  

PART 6.3 - THE DIFFERENT TYPES OF TAKEOVER BID  

SECTION 616   OFF-MARKET BIDS AND MARKET BIDS  

616(1)   [ Kinds of bids]  

There are 2 kinds of takeover bid:


(a) an off-market bid (for quoted or unquoted securities); or


(b) a market bid (only available for quoted securities).

Note: Although the prohibition in section 606 is against acquiring relevant interests in voting shares, a takeover bid may be made for any securities (for example, as a preliminary to compulsorily acquiring securities in that class under Part 6A.1 ).

616(2)   [ Table relating to offer provisions]  

The following table shows where to find the provisions dealing with the main features of the offers that may be made under off-market bids and market bids and the procedures to be followed:


Takeover bids [ signpost table ]
Feature Off-market bid Market bid
1 people to whom offers made 617(1) - (2) 617(3)
2 securities covered 618(1) - (2) 618(3)
3 consideration offered for the securities 621(1), (3) - (5) and 651A 621(2), (3) - (5)
4 escalation agreements and collateral benefits not allowed 622 and 623 622 and 623
5 offer period 624(1) - (2) and 650C 624(1) - (2) and 649C
6 conditional offers 625(2) - (3) and 626 - 630 625(1)
7 procedure to be followed in making bid 632 and 633 634 and 635
8 acceptances 650E and 653A - 653B -


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