Among the Member States of the European Union, the 2004 Takeover Directive sets general standards for national takeover legislation, including a rule for a mandatory offer, although the choice of threshold is left to each state. [25] As announced for and on behalf of the Bidder, MGO was and was declared unconditional in all respects on November 1, 2021. The increase in total ownership by more than 1% triggered an obligation for Startree under Code3 to make the MGO for shares of Sembcorp Marine that Offeror Concert Party Group does not yet own at least the highest price at which Offeror Concert Party Group has acquired shares in the six months immediately preceding MGO`s announcement. In accordance with its obligations under the Code, Startree has set the rights issue price of S$0.08 as the highest price then in effect and, therefore, the offer price is S$0.08 per share in cash (the „Offer Price“). In India, the mandatory offer rule emerged in the 1980s as part of the listing agreement between listed companies and stock exchanges. After the Securities and Exchange Board of India (SEBI) became a statutory body under the SEBI Act 1992 with the power to enact subsidiary laws, the Board promulgated the Substantial Acquisition of Shares and Takeover (SEBI) REGULATIONS 1994 (colloquially the „Takeover Code“), which regulate takeover bids, including a mandatory offer rule. A subsequent review committee chaired by former Chief Justice P.N. Bhagwati recommended the repeal of the 1994 regulations and their replacement by the Substantial Acquisition of Shares and Acquisition (SEBI) Regulations 1997. A third review by the Head of the Securities Appeal Tribunal, C. Achuthan, led to the replacement of the 1997 provisions by the Substantial Share Acquisition and Acquisition Regulations, 2011 (SEBI) [17]. The mandatory offer provided for in the Takeover Code is a partial offer: it requires acquiring companies that exceed the participation threshold to offer an offer to purchase a portion of the outstanding shares and not all outstanding shares. Under the Takeover Act 1997, the participation threshold was 15 per cent; Once exceeded, the purchaser should make an offer to purchase 20% of the outstanding shares. Under the 2011 Takeover Code, these percentages were increased to 20% and 26% respectively.

[18] The 2011 Takeover Code also provides for other mandatory offers from an incumbent operator that holds between 25% and 75% of a target if its holdings are increased by at least 5% in a financial year. [19] Singapore, 22 September 2021 – To meet the requirements of the Singapore Takeover and Merger Code („Code“), Startree Investments Pte. GmbH. („Startree“ or the „Offering“), an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited, today announced a mandatory conditional general cash offer to acquire all of the issued and paid-up common shares („Shares“) of Sembcorp Marine Ltd („Sembcorp Marine“) that it and its concert companies (collectively, the „Concert Party Offering Group“) do not yet hold, at a price of SINGAPORE$0.08 PER share in cash (the „MGO“). Brazilian company law provided for a mandatory offer rule before 1997. It was repealed this year and partially reinstated in 2000 under pressure from institutional investors. The Code has no legal value. [15] However, compliance with the Code is required by Listing Rule 13.23 of the Hong Kong Stock Exchange. [16] In Germany, mandatory offers are required by the Takeover Act. [26] An acquiring corporation must make a mandatory offer if it achieves a „controlling interest“ in the objective defined in section 35 of the Act as a direct or indirect interest of thirty per cent. When it reaches this threshold, the acquiring company must inform the target company and the Swiss Financial Supervisory Authority and make an offer to acquire the remaining shares in the form provided for in Article 11 of the Act and its provisions. [27] The legal framework for mandatory offers under Turkish law was established by Article 26(1) of the Capital Markets Act (Sermaye Piyasası Kanunu, Law No.

6362 of 1981), which authorises the Turkish Capital Markets Council to issue regulations on mandatory offers. The first of these regulations, the Communiqué on the Principles Applicable to Takeover Bids (Series: IV, No. Most countries, with the notable exception of the United States, have regulations that require mandatory offers. Although the United States is the main model for Taiwan`s M&A laws, Taiwan introduced a partially mandatory request for offer in Section 43(1) of the Securities and Exchange Act [zh] in 2002. The mechanisms of the rule were largely based on uk and Hong Kong rules, although Taiwan only needed a partial offer to purchase outstanding shares, rather than the full offer required in the UK and Hong Kong. [24] Since 1993, a mandatory offer rule has applied in one form or another to companies listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, although the China Securities Regulatory Commission (CSRC) has the power to grant exemptions and, in practice, acquirers can also structure their transactions in such a way that the rule is not triggered in many cases. [10] [11] The first version of the rule was adopted by the similar rule in Hong Kong, because at that time, many Chinese state-owned enterprises were already listed on the Hong Kong Stock Exchange and the authors of the regulation sought advice from Hong Kong experts. The rule provided that upon the acquisition of 30% of the outstanding common shares of the target company, the acquirer must make an offer for all remaining outstanding shares within 45 business days at a price at least equal to the highest price paid by the acquirer in the last year for the shares already held and the average market price of the shares in the last 30 days. [12] This rule remained in effect after the passage of the Securities Act of 1998 [zh], although the 1999 Act relaxed some related reporting requirements […].