THE CORPORATIONS LAW

CHAPTER 6 - TAKEOVERS

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PART 6.3 - THE DIFFERENT TYPES OF TAKEOVER BID

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SECTION 616   OFF-MARKET BIDS AND MARKET BIDS  

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616(1)  (Kinds of bids)  

There are 2 kinds of takeover bid:

(a)  an off-market bid (for quoted or unquoted securities); or

(b)  a market bid (only available for quoted securities).

Note:

Although the prohibition in section 606 is against acquiring relevant interests in voting shares, a takeover bid may be made for any securities (for example, as a preliminary to compulsorily acquiring securities in that class under Part 6A.1).

616(2)  (Table relating to offer provisions)  

The following table shows where to find the provisions dealing with the main features of the offers that may be made under off-market bids and market bids and the procedures to be followed: 

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 Takeover bids                         [signpost table]
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 Feature                        Off-market    Market
                                bid           bid
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 1  people to whom offers made  617(1)-(2)    617(3)
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 2  securities covered          618(1)-(2)    618(3)
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 3  consideration offered for   621(1),       621(2),
    the securities              (3)-(5) and   (3)-(5)
                                651A
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 4  escalation agreements and   622 and 623   622 and
    collateral benefits not                   623
    allowed
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 5  offer period                624(1)-(2)    624(1)-(2)
                                and 650C      and 649C
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 6  conditional offers          625(2)-(3)    625(1)
                                and 626-630
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 7  procedure to be followed    632 and 633   634 and
    in making bid                             635
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 8  acceptances                 650E and      --
                                653A-653B
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