Tender Offer Issues (2002 code)

Tender Offer Issues in Acquiring PRC Listed Companies;

David Liu, Natasha Xie – david.liu@pdlo.com or natasha.xie@pdlo.com. China Law & Practice; Hong Kong (May 2004): 1.

Abstract

The PRC Securities Law (1999) provides a mandatory tender offer requirement applicable to a takeover of more than 30% of the issued shares of a listed company. Where a takeover is to be conducted, the investor shall make a public offer to all existing shareholders unless exempted by the securities supervisory authority from such an obligation. Differing from previous regulations where a tender offer rule covered stock exchange transactions and also private agreements outside of the market, the Securities Law does not apply this rule to a takeover by agreement between parties.

The PRC Securities Law (1999) provides a mandatory tender offer requirement applicable to a takeover of more than 30% of the issued shares of a listed company. Where a takeover is to be conducted, the investor shall make a public offer to all existing shareholders unless exempted by the securities supervisory authority from such an obligation. Differing from previous regulations where a tender offer rule covered stock exchange transactions and also private agreements outside of the market, the Securities Law does not apply this rule to a takeover by agreement between parties.

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