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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 662B
Bidder to tell remaining holders of their right to be bought
Notice to remaining holders of bid class securities
(1) The bidder must:
- prepare a notice in the prescribed form that:
- states that the bidder and their associates have relevant interests in at
least 90% (by number) of the securities in the bid class; and
- informs the holder of bid class securities about their right to be bought
out under this Part; and
- sets out the terms on which the holder may be bought out; and
- lodge the notice with ASIC; and
- give the notice to each other person who:
- is a holder of securities in the bid class on the day on which the notice
is lodged with ASIC; and
- has not been given a compulsory acquisition notice under
section 661B when the notice under subsection (2) is given; and
- give the notice to each relevant securities exchange on the same day as it
is lodged with ASIC if the target is listed.
If alternative forms of consideration were offered under the takeover bid, the
notice must specify which of those forms will apply to the acquisition of the
holder's securities if the holder does not give the bidder an election notice
under subsection 662C(1).
- Note: The notice is be given to everyone who holds bid class securities on the
day on which the notice is lodged with ASIC. Under section 662C, anyone
who acquires the securities after that day may require the bidder to acquire
Time for dispatching notice to holders
(2) The bidder must dispatch the
notices under paragraph (1)(c):
- during, or within 1 month after the
end of, the offer period; and
- on the day the bidder lodges the notice with ASIC or on the next business
The notices cannot be withdrawn.
Manner of giving notice to holders
(3) The bidder may give the notice to a
- personally; or
- by sending it by post to the address for the holder in the register of
members, debenture holders or option holders.
A notice sent by post is taken to be given 3 days after it is posted.
(4) The notice may be sent:
- if the notice is to be sent to the holder
outside Australiaby pre-paid airmail post or by courier; or
- if the notice is to be sent to the holder in Australiaby pre-paid
ordinary post or by courier.
This subsection does not limit the manner in which the document may be sent to
- Note: Section 109X makes general provision for service of documents.
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