PAKISTAN: SECP Publishes Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations 2017

Wednesday August 9 2017

On 7^th August 2017, the Securities and Exchange Commission of Pakistan (SECP), after consultation with the stakeholders has issued Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. These Regulations have replaced Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2008.

The regulations have been made pursuant to Part IX of the Securities Act, 2015, which provides for a regulatory framework for acquisition of voting shares beyond the prescribed limit of 30 percent or control of a listed company.

The timeline for completing the public offer process has been reduced from 92 days to 75 days. Any “consultant to the issue” duly licensed by the Commission may be appointed by the acquirer as a manager to the offer. Moreover, considering the liquidity risk, debt securities (other than government securities) are not eligible securities for the performance of obligations by the acquirer under the public offer. Keeping in view, the liquidity risk in debt securities and price risk in equity securities, payments to shareholders have been restricted to cash payments only.

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