THE CORPORATIONS LAW

CHAPTER 6 - TAKEOVERS

PART 6.4 - FORMULATING THE TAKEOVER OFFER

Division 2 - Consideration for the offer

SECTION 623   COLLATERAL BENEFITS NOT ALLOWED  

623(1)  [Benefits during offer period]  

A bidder, or an associate, must not, during the offer period for a takeover bid, give, offer to give or agree to give a benefit to a person if:

(a)  the benefit is likely to induce the person or an associate to:

(i) accept an offer under the bid; or

(ii) dispose of securities in the bid class; and

(b)  the benefit is not offered to all holders of securities in the bid class under the bid.

623(2)  [Receipt of benefit]  

For the purpose of this section, a person does not receive a benefit that is not offered under a takeover bid merely because the person sells bid class securities on-market and the takeover bid is an off-market bid or a conditional bid.

623(3)  [Limits on prohibition]  

This section does not prohibit:

(a)  the variation of a takeover offer as provided by sections 649A to 650D; or

(b)  an acquisition of securities through an on-market transaction; or

(c)  simultaneous takeover bids for different classes of securities in the target.