ASIC has released a consultation paper Takeovers, compulsory acquisition and substantial holdings: Update of ASIC guidance (CP 193 ) and 4 draft new guides (consolidating 17 existing regulatory guides which deal with takeovers) covering topics including takeover bids, substantial holdings, and compulsory acquisition and buy-outs.

Specific revisions and new policy proposals include:

• discussion on rights issues and underwriting arrangements which have the potential to affect control of an entity
• updated guidance on when a selective benefit may be prohibited in a takeover bid because it may be likely to induce a person to accept the bid or dispose of target securities
• new guidance and class order relief in relation to the use and operation of acceptance facilities in takeover bids, and
• updated guidance on when a person may have a ‘relevant interest’ in securities and the associated requirements to disclose substantial holdings and comply with the takeover provisions.