Corporations Act 2001

CHAPTER 6 - TAKEOVERS  

Note: This Chapter only applies to acquisitions of interests in a CCIV if the CCIV is a listed company: see Division 1 of Part 8B.7 .

PART 6.4 - FORMULATING THE TAKEOVER OFFER  

Division 3 - The offer period  

SECTION 624   OFFER PERIOD  

Offer period set in offer

624(1)    
The offers under a takeover bid must remain open for the period stated in the offer. The period must:

(a)    start on the date the first offer under the bid is made; and

(b)    last for at least 1 month, and not more than 12 months.

However, the offer may be withdrawn during that period under section 652B .

Note: Sections 649C (market bids) and 650C (off-market bids) deal with variation of the offer period.

Automatic extension of offer period if bidder reaches 50% or consideration increased in last week

624(2)    
If, within the last 7 days of the offer period:

(a)    for an off-market bid - the offers under the bid are varied to improve the consideration offered; or

(b)    in any case - the bidder's voting power in the target increases to more than 50%;

the offer period is extended so that it ends 14 days after the event referred to in paragraph (a) or (b). The bidder must give the target and everyone who has not accepted an offer under the bid written notice that the extension has occurred within 3 days after that event.

Note: The consideration for a market bid cannot be increased in the last 5 trading days of the offer period (see section 649B ).

Strict liability offences

624(3)    

An offence based on subsection (2) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .