Commonwealth Consolidated Acts

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Freeing off-market bids from defeating conditions

             (1)  If the offers under an off-market bid are subject to a defeating condition, the bidder may free the offers, and the takeover contracts, from the condition only by giving the target a notice declaring the offers to be free from the condition in accordance with this section:

                     (a)  if the condition is that the bidder may withdraw unaccepted offers if an event or circumstance referred to in subsection 652C(1) or (2) occurs in relation to the target--not later than 3 business days after the end of the offer period; or

                     (b)  in any other case--not less than 7 days before the end of the offer period.

             (2)  The notice must:

                     (a)  state that the offers are free from the condition; and

                     (b)  specify the bidder's voting power in the company.

             (3)  The notice must be:

                     (a)  if the securities in the bid class are quoted--given to the relevant market operator; and

                     (b)  if those securities are not quoted--lodged with ASIC.

             (4)  An offence based on subsection (3) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .

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