Withdrawal and Change of Info or Variation in Terms (time and info)

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You can grab notes on other topic from here.

  • Shares cannot be taken up for 35 days and shares deposited within the 35 day period can be withdrawn at any time prior to the end of the 35 day period.
  • If there is a variation in the bid, the withdrawal right is extended by 10 days unless the shares have already been taken up (35 days has passed) or the variation is simply an increase in the consideration offered or a waiver of a condition.

Section 98.1: Withdrawal of securities

  • (1) A security holder may withdraw securities deposited under a formal bid,

o (a) at any time before the securities have been taken up by the offeror;

o (b) at any time before the expiration of 10 days from the date of a notice of change under section 94.3 or a notice of variation under section 94.4; or

o (c) if the securities have not been paid for by the offeror within three business days after the securities have been taken up.

 

Section 94.3: Change in Information

  • (1) If, before the expiry of a formal bid or after the expiry of a bid but before the expiry of all rights to withdraw the securities deposited under the bid, a change has occurred in the information contained in the bid circular or any notice of change or notice of variation that would reasonably be expected to affect the decision of the security holders of the offeree issuer to accept or reject the bid, the offeror shall promptly

o (a) issue and file a news release; and

o (b) send a notice of the change to every person or company to whom the bid was required to be sent and whose securities were not taken up before the date of the change.

Section 94.4: Variation of Terms

  • (1) If there is a variation in the terms of a formal bid, including any extension of the period during which securities may be deposited under the bid, and whether or not that variation results from the exercise of any right contained in the bid, the offeror shall promptly issue and file a news release and send a notice of variation to every person or company to whom the bid was required to be sent and whose securities were not taken up before the date of the variation.

Legislative Goal Met

Protect SHs by providing time and information (and payment)

Gives Time for SHs to Wait and See if there is a Higher Bid:

  • Everyone tenders on last day anyway, bc they’re waiting to see if there is a higher one
  • After Amendment, gives time to assess information:
  • 10 day w/d right, as long as shares haven’t already been taken up
  • Encourages Company to Pay

You can grab notes on other topic from here.


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