RE: McM6 Nov 2023 20:45
No, this is not definite. Take a look at this weblink which explains an ASX off market takeover offer... How a takeover bid works - off-market. This article explains how an off-market takeover bid can be used to acquire control of a listed Australian company.
https://www.minterellison.com/articles/how-an-off-market-takeover-bid-works
What is an off-market takeover bid
Takeover bids are the most common way in which control of Australian listed companies and managed investment schemes is acquired.
There are two types of takeover bids: off-market and on-market, with off-market takeover bids being far more common than on-market takeover bids.
An off-market takeover bid is a procedure under Chapter 6 of the Corporations Act under which a bidder makes individual offers directly to all target securityholders to acquire their securities.
Target securityholders are free to decide whether or not to accept the bidder's offer – if they accept then the bidder acquires their target securities.
If the target board recommends that target securityholders accept the bidder's offer from the outset, the off-market takeover bid is considered 'friendly'. As an off-market takeover bid is driven by the bidder and does not require target consent or co-operation, it can also be used for a 'hostile' acquisition of a target.
Interestingly, hostile off-market takeover bids are more common than friendly off-market takeover bids, and in most cases an off-market takeover bid that starts as a hostile bid is only successful if it is ultimately recommended by the target board.
Overview of an off-market takeover bid
An off-market takeover bid consists of sending offers contained in a bidder's statement to target securityholders, a response by the target in its own target's statement, and target securityholders lodging acceptance forms and receiving cash or scrip (or a combination thereof) as consideration from the bidder in exchange for their target securities.
Key steps in an off-market takeover bid:
Initial approach
The first key step in a friendly off-market takeover bid will typically involve the bidder approaching the target with an indicative offer to acquire 100% of target pursuant to an off-market takeover bid.
Due Diligence
If the target is amendable to the bidder's offer, the target will typically grant the bidder an exclusive or non-exclusive period of due diligence so that the bidder can confirm its interest in the target and the offer price.
If the offer price includes bidder scrip, the target may undertake some due diligence on the bidder so that it may confirm the value of the bidder scrip.
In a hostile off-market takeover bid, the bidder will not have access to target's confidential information, but will base its offer price and terms on the bidder's understanding of target gained form publically available information such as target's continuous disclosure announcements and periodic finan
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