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Thursday, 5 May 2016

EFSA amends regulations on mandatory offers, disclosures

The Egyptian Financial Supervisory Authority (EFSA) has approved three new conditions exempting listed companies from issuing a mandatory tender offer. The provisions are in EFSA’s most recent amendments to the Capital Market Act’s executive regulations. Under these conditions, a company seeking to acquire another is not required to issue an MTO if the shareholders of the target company unanimously approve the acquisition. A shareholder planning to buy a 50% stake in a parent company is also not required to issue an MTO for the company’s listed subsidiaries in which it holds at least a 33% stake. Additionally, public sector holding companies restructuring their subsidiaries can appropriate employee-owned shares without an MTO. EFSA also amended listing regulations, requiring all companies to issue disclosures on any and all pending legal cases or actions involving management, assets, or subsidiaries that could have an impact a financial impact on the firm’s fortunes, Al Borsa reports.

What impact will these changes have on the acquisition of CI Capital or OTMT’s standing with EFSA? None whatsoever, EFSA’s head Sherif Samy tells Al Borsa, adding that the new conditions will not be applied retroactively.

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