RE: SB19 Apr 2020 18:35
Hi Jersey,
Extract from Rule 29 of the Takeover Code.
Requirement for valuation report: Except with Panel consent, a valuation (i) published during the offer period (Rule 29.1(a)(i)) must be in the form of, or accompanied by, a valuation report or (ii) published in the qualifying timescales before an offer period (see "Applicable valuations" above), must be confirmed in (or updated by) a valuation report – that report must be in the offer document or offeree board circular or, if earlier, in the first announcement or document published during the offer period by the offeree company/securities exchange offeror which refers to that valuation.
Valuer: Rule 29.3 states that the valuer must be considered by the Panel to be independent, be appropriately qualified and have sufficient current market knowledge and the necessary skills and understanding to prepare the report.
Valuation report: In terms of the report, the final form Rule 29.4(b) sets out various content requirements and makes it clear that the report must not be qualified or subject to special assumptions (namely assumptions that assume facts that differ from the actual facts existing at the valuation date or which would not be made by a typical market participant in a transaction on the date of the valuation), except with Panel consent or where an assumption is required (under Note 3(a)) concerning development land.
No material difference statement: New Rule 29.5 now requires that if the asset valuation date is not the same as the date of the document or announcement in which the valuation report is to be published, that document/announcement must include a statement by the directors that the valuer has confirmed that an updated valuation would not be materially different (failing which, an updated valuation would have to be published).
ATB - Paddy
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