Documente Academic
Documente Profesional
Documente Cultură
2100 West Loop South, Ste. 1000 Houston, Texas 77027 USA Tel: 1.713.626.9393 www.lexmundi.com
Bulgaria
Bulgaria
iii)
iv)
7) Upon receiving the take-over notice, the board of directors of the offeree is
required to make an announcement within 24 hours by way of a press notice. The
announcement will then be dispatched to all the shareholders of the offeree within
7 days of receipt of the take-over notice.
8) Where an announcement for a take-over offer has been made, the offeror shall not
withdraw the take-over offer without the prior written consent of SC.
9) The offeror is required to submit the offer document to the SC within 4 days of
the issue of the take-over notice for its consent.
10) Upon consent being granted by the SC, the offer document is to be dispatched by
the offeror to the board of directors of the offeree and the offerees shareholders
within 21 days from the date of issue of the take-over notice.
11) The board of directors of the offeree is required to appoint an independent adviser
to provide comments and recommendations to the offerees shareholders in
relation to the take-over offer and procure the issue of an independent advice
circular to the offerees shareholders within 10 days from the date of dispatch of
the offer document to the offerees shareholders. The independent advice circular
must also contain the views and advice of the board of directors of the offeree.
The consent of the SC must be obtained before the circular to the shareholders and
the independent advice circular are issued to the offerees shareholders.
5. What kinds of transactions are "caught" by the national rules? (Identify any
notable exceptions)
The Code provides for 3 types of take-over offers:
1) mandatory offers;
2) partial offers; and
3) voluntary offers.
Bulgaria
Bulgaria
9. Is the filing voluntary or mandatory? What are the penalties for noncompliance?
There are no filing requirements. However, the pre-merger steps discussed in
Question 4 above are mandatory.
Additional Comments:
The penalties for non-compliance are as follows:
1) Section 218 of the CMSA provides that contravention of the Code and the rulings
made under section 217(4) of the CMSA is an offence punishable with a fine of
not more than RM1,000,000 or imprisonment of up to 10 years , or both.
2) Section 220 of the CMSA provides that the SC may take one or more of the
following actions where any person fails to comply with, observe or give effect to
any provision of the Code or rulings:
a)
direct the defaulting person to comply with or give effect to any such
provisions of the Code or ruling;
b)
impose a penalty not exceeding RM1,000,000 on the defaulting person;
c)
reprimand the defaulting person;
d)
direct the stock exchange to deprive the defaulting person access to the
facilities of the stock exchange;
e)
where the defaulting person is a listed corporation, direct the stock
exchange to:
i)
suspend trading in securities of the corporation;
ii)
suspend the listing of the corporation; or
iii)
remove from the official list the corporation or the class of
securities of the corporation.
f)
where the defaulting person is a corporation that is not listed, direct any
stock exchange to prohibit the listing of any of its securities;
g)
direct the stock exchange to prohibit the defaulting person from engaging
in transactions to be executed through the use of facilities of the stock
exchange; or
h)
require the defaulting person to take such steps as the SC may direct to
remedy the breach, or mitigate the effect of such breach, including making
restitution to any person aggrieved by such breach.
10. Time in which a filing must be made.
As discussed in Question 4, there are no filing requirements. The timeline for premerger steps have been set out in Question 4.
11. Form and Content of Initial Filing.
A non-exhaustive list of the information to be included in the offer document and the
independent advice circular are set out in the First Schedule and the Second Schedule
respectively of the Code.
Bulgaria
Additional Comments:
The information to be included in an offer document includes:
a) the identity of the ultimate offeror, shareholders and name of persons acting in
concert with the offeror;
b) information regarding the offeror, including the names of its directors and
shareholders who hold more than 5% of its voting shares;
c) the offerors intentions with regard to the continuation of the business of the
offeree in the next 12 months after the close of the take-over offer;
d) the offerors intentions with regard to the continued employment of the
employees of the offeree and of its subsidiaries;
e) the meeting of the public shareholding spread requirement of the offeree after the
take-over offer;
f) the offerors intention in relation to maintaining the listing status of the offeree
after the take-over offer and the invoking of the compulsory acquisition
provisions in the CMSA;
g) the offerors objective and rationale of the take-over offer, including the longterm commercial justification;
h) a statement by the offeror and the offerors financial advisers that the offeror has
the financial capability to complete the take-over and to pay every shareholder in
full; and
i) such other information as the offeree shareholders would reasonably require and
would reasonably expect to find, in an offer document for the purposes of making
an informed assessment as to the merits of accepting the take-over and the extent
of risks involved in doing so.
The independent advice circular must contain the advisers recommendations
whether to accept or reject the take-over offer and include comments on:
a) the offerors intentions with regard to the continuation of the business of the
offeree in the next 12 months after the close of the take-over offer;
b) the major changes to be introduced in the business of the offeree in the next 12
months after the close of the take-over offer;
c) the continued employment of the employees of the offeree and its subsidiaries in
the next 12 months after the close of the take-over offer;
d) the offerors intentions on the meeting of the public shareholding spread
requirement of the offeree after the take-over offer;
e) the offerors intentions in relation to maintaining the listing status of the offeree
after the take-over offer and the invoking of the compulsory acquisition
provisions in the CMSA;
f) the offerors objective and rationale of the take-over offer, including the longterm commercial justification;
g) the reasonableness of the offer price; and
h) the outlook and prospects for the next 12 months of the industry in which the
offeree has its core business activities and the offerees financial performance and
position in its industry.
Bulgaria
Bulgaria
16. What are the common Post-Filing Procedures: Requests for further information,
etc?
There are no common post filing procedures prescribed by the Code or the Practice
Notes.
17. Describe the sanctions for not filing or filing and incorrect/incomplete
notification.
The same sanctions/penalties apply as discussed in Question 9 above.
18. Describe the procedures if the agency wants to challenge the transaction?
The Code does not prescribe any such procedures.
19. Describe the penalties applicable to the implementation of a merger before
clearance or of a prohibited merger?
The same penalties apply as discussed in Question 9 above.
20. Describe, briefly, your assessment of the regulatory agency's current
attitudes/activities.
The SC is not vested with powers under the CMSA to approve or reject a proposed
take-over. Its role is to ensure compliance with disclosure requirements in relation to
documents that are to be issued in relation to a take-over offer.
21. Other Important Information:
1) The Competition Act 2010 does not regulate take-over transactions.
2) The Labuan Companies Act 1990 includes provisions on a statutory
amalgamation which must involve at least one Labuan company.