Regulatory Alerts2012-04-30
Added
Notice 810 Take-Over and Merger
The Monetary Authority of Singapore mandates that all finance companies must consult the Authority regarding any plan to acquire more than 20% of shares in a Singapore-incorporated bank or finance company. This consultation is required at the negotiation stage when success is reasonably anticipated to secure in-principle approval before proceeding. Failure to obtain this prior approval may result in the Authority rejecting the take-over or merger proposal even if the parties have subsequently agreed to the terms.
MAS 810 1 November 1973 NOTICE TO FINANCE COMPANIES FINANCE COMPANIES ACT, CAP 191 BFI (FC) Circular No. 2/73 dated 9 February 1973 is cancelled. Take-Over and Merger All finance companies are required to consult the Authority of any plan of take-over or merger with any Singapore-incorporated bank or finance company by means of acquiring more than 20% of its shares. The Authority should be immediately consulted at the stage of negotiation where finance companies are confident that the banks or finance companies have a reasonable chance of success. Failure by finance companies to take such a measure so as to obtain from the Authority approval in principle may result in the Authority not approving the proposal of take-over or merger despite its being agreed upon subsequently by the parties concerned. The information should be conveyed in writing under confidential cover by telephone to the Manager, Banking and Financial Institutions Department of the Authority or his deputy during his absence. Last modified on 19/3/2007