Regulatory Alerts2013-01-01
Decision No. 81: Exemption from Tender Offer Rules for Treasury Share Cancellation and Capital Increase Cases
The Capital Market Authority's Board of Directors issued Decision No. 81 of 2013, which formally exempts specific corporate capital adjustments from the mandatory tender offer requirements stipulated in Chapter Twelve of the Executive Regulations of Capital Market Law No. 95 of 1992. This exemption explicitly applies to capital reductions triggered by the cancellation of treasury shares and to capital increases financed through cash or credit balances. However, the decision clarifies that this exemption does not extend to the purchase of subscription rights associated with any capital increase.
Decision No. (81) Approving that the following cases are not subject to the provisions of Chapter Twelve "Tender Offers for Acquisition" of the Executive Regulations of Capital Market Law No. 95 of 1992:
- Reduction of companies' capital as a result of the cancellation of treasury shares.
- Increase of companies' capital in cash or through credit balances. This exemption does not apply to the purchase of subscription rights in a capital increase.