Foreign Acquisitions and Takeovers Act 1975
PART 2
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ACTIONS TO WHICH THIS ACT APPLIES
Division 4
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The threshold test and change in control
Subdivision B
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The threshold test
SECTION 51
51
THE THRESHOLD TEST FOR ENTITIES AND BUSINESSES
The threshold test is met in relation to an entity or business for an action mentioned in column 1 of the following table if the value mentioned in column 2 of the table is more than the value prescribed by the regulations.
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Hide history noteThe threshold test is met in relation to an entity or business for an action mentioned in column 1 of the following table if the value mentioned in column 2 of the table is more than the value prescribed by the regulations.
| When the threshold test is met | |||
| Item |
Column 1
Kind of action |
Column 2
Value |
|
| 1 | A person acquiring a direct interest in an Australian entity or Australian business that is an agribusiness | The total of the following: | |
| (a) | the value of the consideration for the acquisition; | ||
| (b) | the total value of the other interests held by the person, alone or together with one or more associates: | ||
| (i) | in the entity or business; or | ||
| (ii) | previously acquired from the entity or business | ||
| 2 | Acquiring interests in securities in an entity, or issuing securities in an entity | The higher of the following: | |
| (a) | the total asset value for the entity; | ||
| (b) | the total issued securities value for the entity | ||
| 2A | Acquiring a substantial interest in an Australian entity | The higher of the following: | |
| (a) | the total asset value for the entity; | ||
| (b) | the total issued securities value for the entity | ||
| 3 | Entering an agreement mentioned in paragraph 40(2)(d) in relation to an entity, or altering a constituent document of an entity as mentioned in paragraph 40(2)(e) | The total asset value for the entity | |
| 4 | Acquiring interests in the assets of an Australian business | The value of the consideration for the acquisition | |
| 5 | Entering or terminating a significant agreement with an Australian business | The total value of the assets of the business |
Note 1: Total asset value , total issued securities value and consideration are defined by the regulations (see section 4 ).
Note 2: The regulations may provide in relation to valuing assets of an entity or business (see section 27 ).
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