RegAlert2024-03-25
Added · Updated
Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017
The Securities and Exchange Commission of Pakistan establishes regulations governing substantial acquisitions of voting shares and takeovers of listed companies, requiring acquirers to make mandatory disclosures to the target company, securities exchange, and Commission within two working days of acquiring shares beyond prescribed thresholds. The framework mandates public announcements of intention and public offers, specifying strict timetables for book closures, offer letters, and offer closure, while defining eligibility for shareholders and GDR/ADR holders. It sets minimum offer pricing rules based on negotiated prices, historical trading data, or net asset values depending on whether shares are frequently traded, and requires acquirers to offer at least fifty percent of remaining voting shares with a maximum minimum acceptance level of thirty-five percent. Additionally, acquirers must furnish security for offer obligations through cash escrow, government securities, bank guarantees, or margin trading eligible shares.
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Government of Pakistan
Securities and Exchange Commission of Pakistan NOTIFICATION Islamabad, the 1st August, 2017. S.R.O. 749(I)/2017.- In exercise of powers conferred by section 124 read with clause (j) of subsection (2) of section 169 of the Securities Act, 2015 (III of 2015), and having been previously published in the official Gazette vide notification S.R.O. 1140 (I)/2016 dated December 2, 2016 as required by sub-section (4) of section 169 thereof, the Securities and Exchange Commission of Pakistan hereby makes the following Regulations, namely:-
Chapter I
Preliminary
- Short title and commencement. – (1) These regulations shall be called the Listed
Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. (2) They shall come into force at once. - Definitions. – (1) In these regulations, unless there is anything repugnant in the subject or
context, –
(a) “acceptance period” means the period commencing on the forty eighth day of the public announcement of [public]1 offer and closing with the close of the public offer which shall not be later than the fifty fourth day from the date of the public announcement of [public] 2 offer; (b) “Act” means the Securities Act, 2015 (III of 2015); (ba) “average daily traded volume” means total traded volume of shares of a listed company divided by total trading days during the period under consideration;3 (c) “date of public announcement” means the date on which the public announcement is published in newspapers; [(ca) “frequently traded shares” means shares of a listed company meeting following criteria during 180 days prior to the date of public announcement of public offer:
(i) the shares have been traded for at least 80 percent of the trading days; and
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This document amends: Amendments in the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017
Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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SECP published 3 documents in the last 30 days. We email you each new one the day it's published.