The Securities and Commodities Authority has stated that there are four types of acquisitions that can be made on shares in the capital of the public shareholding company established in the state, which has been offered shares in a public offering, or listed on a financial market in the country.
In an awareness bulletin, Emirates Today obtained a copy, she explained that the four types of acquisition are: “compulsory”, “optional”, “partial” and “compulsory”.
Compulsory acquisition
According to the «Securities», the provisions of compulsory acquisition are applied, if the ownership of a person or group of related persons or related parties reaches (30% + one security) or more in the target company of the acquisition, after the commencement of the Authority’s chairman’s decision (18 / R.M.) for the year 2017.
She added that the provision of this clause applies to every person or group of related persons or related parties, who owns / owns (50% + one security) or more, if the percentage of his / her ownership falls to between 30% and (50% + one security).
Optional acquisition
The "securities" indicated that the provisions of voluntary acquisition are applied when a person or group of related persons, or related parties, wants to acquire securities that lead to his / her own ownership of (30% + one security) or more in Targeted acquisition.
Partial acquisition
The Commission noted that the partial acquisition provisions are applied in two cases: the desire of a person or group of related persons or related parties to acquire a specified number of securities that leads to his / her ownership not exceeding 30% of the securities The company provided for the completion of the acquisition, that the offered securities be at the end of the offer period equal to the required number of securities to be acquired in the target acquisition company and more.
As for the second case in which the partial acquisition provisions are applied, it is the desire of a person or group of related persons or related parties to acquire a specific number of securities that leads to his / her own ownership of (50+ securities) and more in Targeted acquisition.
Mandatory acquisition
Al-Warraq Financial reviewed the cases in which mandatory acquisition provisions are applied, as follows:
First: The desire of any of the other owners of securities holding a percentage representing at least 3% of the securities to apply to the acquiring entity that has acquired the ratio (90% + one security) or more with an application to submit an offer to acquire the minority securities.
The authority warned that the requesting party must decide on the application within a period not exceeding 60 days from the date of receiving the request. In the event that the acquiring party rejects, or if the request is not decided during the aforementioned period, these owners may submit a request to the authority to compel the acquiring body to submit an offer, and in the event the authority accepts the request, it informs the acquiring entity, which is then obliged to submit a proposal within 60 days of The date of informing it of the Authority’s decision.
Second: The desire of the acquiring entity that has acquired the ratio of (90% + one security) or more, to submit a request to the authority to agree to make a mandatory offer, to compel the minority of the owners of the securities to sell / exchange all the securities they own for the benefit of the acquiring entity , When the articles of association of the target company to acquire - the acquisition - allow this, within a period not exceeding 60 days from the date of the final settlement of the original offer.
Third: The minority of the owners has the right to resort to the competent court within 60 days of being notified in writing of the request of the acquiring authority. The mandatory offer procedures are not suspended except by a decision of the court.