THE Singapore Code on Takeovers and Mergers is being reviewed by the Securities Industry Council (SIC), to take into account market developments and international practices that have changed since its last review in 2012.
SIC, whose main function is to administer and enforce the Takeover Code, issued a consultation paper of proposed amendments to the code on Monday.
Key proposals include changes to provide greater certainty on procedures and timelines where there are competing offers, and changes to encourage the boards of offeree companies to be more proactive about safeguarding shareholders' interests.
Other proposed amendments will require more timely disclosure of any material change to information previous published in an offer, and will streamline existing practices, for example, by clarifying the calculation of the value of a comparable offer involving payment for a different class of shares.
These areas in which the code needs to be refined or updated were identified in discussion with investment bankers and lawyers active in merger and acquisition transaction, SIC said.
Interested parties can view the consultation paper on the Monetary Authority of Singapore's website, and submit written comments to the council by Thursday, August 6.
- Hock Lock Siew: Proposed changes to Takeover Code welcome